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Mickey Lawson is considering investing some money that he inherited. The following payoff table gives the profits that would be realized during the next year
Mickey Lawson is considering investing some money that he inherited. The following payoff table gives the profits that would be realized during the next year for each of three investment alternatives Mickey is considering: State of Nature Decision Alternative Good Economy Poor Economy Stock Market 80000 -20000 Bonds 40000 21000 CDs 25000 25000 Probability .5 .5 1.) Develop an opportunity loss table for the investment problem that Mickey Lawson faces. 2.) What decision would minimize the expected opportunity loss? 3.) What is the minimum EOL
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