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Warren Buffy is an enormously rich investor who has built his fortune using tremendous acumen. He currently has been offered 3 major investments and has
Warren Buffy is an enormously rich investor who has built his fortune using tremendous acumen. He currently has been offered 3 major investments and has to choose of 3. The following table shows the returns for each investment and the ikelihood of the economy. The numbers are in millions of $\$$. When answering, you may write 30 for 30 million. \begin{tabular}{lccc} & Improving & Stable Worsening \hline Conservative Investment & 30 & 5 & $-10$ \hline Speculative Investment & 40 & 10 & $-30$ \hline Countercyclical Investment & $-10$ & 0 & 15 W \hline Prior Probability & $0.1$ & $0.5$ & $0.4$ \end{tabular) What is the payoff under minimax regret. SP.VS.783
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