Investment advisors estimated the stock market returns for four market segments: computers, financial, manufacturing, and pharmaceuticals. Annual return projections vary depending on whether the general economic conditions are improving, stable, or declining. The anticipated annual return percentages for each market segment under each economic condition are as follows:

Assume that an individual investor wants to select one market segment for a new investment. A forecast shows stable to declining economic conditions with the following probabilities: Improving (0.3), stable (0.5), and declining (0.2).

(a) What is the preferred market segment for the investors? What is the expected monetary value of your recommendation? (1 marks)

(b) What is the maximum payment for hiring an expert and requesting additional information to make safer decisions? (2 marks)

(c) What is the minimax regret of these scenarios? (2 marks)

	Improving	Stable	Declining
Computers	10	-3	4
Financial	8	5	3
Manufacturing	6	4	-2
Pharmaceuticals	9	5	2
Probability	0,3	0,5	0,2