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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 $70 Based on the above information, what would be the amount of regret, if alternative A4 is selected by the investor and suppose that the state of nature turns out to be S2? Note: don't insert the dollar sign ($) when answering the
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