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Mickey Lawson is considering investing some money he inherited. The following payoff table gives the profits that would be realized during the next year for
Mickey Lawson is considering investing some money he inherited. The following payoff table gives the profits that would be realized during the next year for each of the decision alternatives Mickey is considering. What decision would you make to maximize the expected monetary value?
| Good Economy | Poor Economy |
Alternative | ($) | ($) |
Stock Market | 80,000 | -20,000 |
Bonds | 30,000 | 20,000 |
CDs | 23,000 | 23,000 |
probability | 0.7 | 0.3 |
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