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The following payoff table is the payoff in one year of three investments alternatives D1, D2 or D3 where each alternative could increase, decrease or

The following payoff table is the payoff in one year of three investments alternatives D1, D2 or D3 where each alternative could increase, decrease or maintain their value depending on economic conditions. You are asked to make the decision under uncertainty. What decision would be made be made under the criteria of realism where =0.7.

State

Decision

Increase

Lose

Remain

D1

80

10

10

D2

10

70

20

D3

10

20

100

The order of the decision is D1 followed by D2, followed by D3.

The order of the decision is D3 followed by D1, followed by D2.

Outcomes of decisions are equal

The order of the decision is D2 followed by D1, followed by D3.

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