Question
Alex wants to invest in one of three companies. The performance of his investment depends on whether demand for the companys products are high, average,
Alex wants to invest in one of three companies. The performance of his investment depends on whether demand for the companys products are high, average, or low. The following regret table will help Alex make his decision:
|
| High Demand | Low Demand | Average Demand |
|---|---|---|---|
| Antons Apps | $0 | $2100 | $9300 |
| Klinkers Cabs | $20,000 | $500 | $0 |
| Mackenzies Motors | $9,300 | $0 | $6700 |
If Alex were to use minimax regret criteria, which company would he choose?
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International Financial Management
Authors: Cheol Eun
9th Edition
1260788865, 9781260788860
