Consider the Following Decision Table with Rewards in $ Millions

question 31

Multiple Choice

Consider the following decision table with rewards in $ millions. $\begin{array}{r}\text { State of Nature }\\\begin{array}{|c|c|c|c|}\hline \text { Decision Alternatives } & S_{1} & S_{2} & S_{3} \\\hline d_{1} & -1 & 2 & 8 \\\hline d_{2} & -3 & 7 & 5 \\\hline d_{3} & -0.5 & 0.75 & 1 \\\hline d_{4} & 0 & 0 & 0 \\\hline d_{5} & -1 & -1 & -1\\\hline\end{array}\end{array}$
Using the maximin criterion, the appropriate choice would be __________.

• A)d₁
• B)d₂
• C)d₃
• D)d₄
• E)d₅

---

Definitions:

Model Business Corporation Act

A set of model laws designed to standardize and simplify the legal structure of corporations across the United States.

Ratifies

The act of officially confirming or endorsing a decision, making it formally valid.

Adoption

In corporation law, a corporation’s acceptance of a preincorporation contract by action of its board of directors, by which the corporation becomes liable on the contract.

Novation

The act of replacing one obligation with a new one, extinguishing the original obligation.