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An investor is considering 4 investments, A, B, C and leaving his money in the bank. The payoff from each investment is a function
An investor is considering 4 investments, A, B, C and leaving his money in the bank. The payoff from each investment is a function of the economic climate over the next 2 years. The economy can expand or decline. The following payoff matrix has been developed for the decision problem. 1 2 3 A B Payoff Matrix 4 Investment Decline 50 6 7 B Economy D Expand 0 85 25 65 40 40 30 8 Bank 10 10 Payoffs What decision should be made according to the maximin decision rule? A B Bank
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