Question
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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