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Suppose a small business investor has a certain amount of money available to invest now. Four alternative investments are available. Th estimated profits of each
Suppose a small business investor has a certain amount of money available to invest now. Four alternative investments are available. Th estimated profits of each investment under each economic condition are indicated in the following table.
Alternatives | States of Nature | |||
S1 | S2 | S3 | S4 | |
A1 | $170 | $45 | -$60 | $100 |
A2 | $30 | $190 | $175 | -$65 |
A3 | $145 | -$50 | $120 | $110 |
A4 | -$40 | $80 | $10 | $70 |
Based on the above information, what would be the amount of regret, if alternative A4 is selected by the investor and suppose that the state of nature turns out to be S4? Note: don't insert the dollar sign ($) when answering the question
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