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Use this table to answer the following and show all work in excel: Which investment would the investor chose under Maximin Criteria? Which investment would
- Use this table to answer the following and show all work in excel:
- Which investment would the investor chose under Maximin Criteria?
- Which investment would the investor chose under Maximax Criteria?
- Assume there is a 70% chance of maximum payoff and a 30% chance of minimum payoff for each investment. What is the weighted average for each investment and which would have the highest payoff?
Investment Choice | S1 | S2 | S3 | S4 | Min Payoff | Max Payoff |
Condo | 27 | 12 | 14 | 26 | 12 | 27 |
Beach House | 45 | 17 | 35 | 20 | 17 | 45 |
Mt Cabin | 52 | 36 | 29 | 15 | 15 | 52 |
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