Question
Doreen is considering investing in one of three alternatives investments plans A, B and C under uncertain economic conditions. The payoff matrix for this decision
Doreen is considering investing in one of three alternatives investments plans A, B and C under uncertain economic conditions. The payoff matrix for this decision situation is
Economic Conditions | |||
Alternatives | 1 | 2 | 3 |
A | $5,000 | $7,000 | $3,000 |
B | -2,000 | 10,000 | 6,000 |
C | 4,000 | 4,000 | 4,000 |
Determine the best investment plan using each of the following criteria: (2 marks each)
a. Laplace
b. Maximin
c. Maximax
d. Huricz ( = 0.3)
e. Regret (minimax)
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Principles of Accounting
Authors: Needles, Powers, crosson
11th Edition
1439037744, 978-1133626985, 978-1439037744
