Refer to the Following:
the Following Payoff Matrix Shows the Various

question 54

Multiple Choice

Refer to the following:
The following payoff matrix shows the various profit outcomes for 3 projects, A, B, and C, under 2 possible states of nature: the product price is $10 or the product price is $20.
$\begin{array}{l}\text { Profit }\\\begin{array}{l|c|c|}\hline \text { Project }&P=\$ 10 & P=\$ 20 \\\hline A&20 & 80 \\\hline B&40 & 60 \\\hline C&-26 & 140 \\\hline\end{array}\end{array}$
-Using the maximum expected value rule, the decision maker would choose

• A) A.
• B) B.
• C) C.
• D) impossible to tell from the information

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