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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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