A real estate investor has to decide the best possible investment alternative for three potential economic climates for the coming fiscal year. She calculates that her profits would be as follows given three likely economic trends:

Profit Deflation Stagnant Inflation Investment 1 20,000 22,000 28,000 Investment 2 10,000 25,000 26,000 Investment 3 3,000 31,000 40,000 Determine the best investment using the following criteria.

a. Maximax

b. Maximin

c. Minimax

d. Probability deflation 0.2; probability stagnant 0.5; probability inflation 0.3.

e. Equal likelihood LO.1