Find the Optimal Row or Column Strategy of the Matrix $\mathrm { M }$

question 39

Multiple Choice

Find the optimal row or column strategy of the matrix game.
-Let $\mathrm { M }$ be the matrix game having payoff matrix $\left[ \begin{array} { r r r r } 1 & 1 & - 2 & 6 \\ 0 & 4 & 5 & 3 \end{array} \right]$ .
Find the optimal column strategy.

• A) \(\hat { y } = \left[ \begin{array} { c } \frac { 7 } { 8 } \\ 0 \\ \frac { 1 } { 8 } \\ 0 \end{array} \right]\)
• B) \(\hat { \mathrm { y } } = \left[ \begin{array} { c } \frac { 5 } { 8 } \\ 0 \\ \frac { 3 } { 8 } \\ 0 \end{array} \right]\)
• C) \(\hat { \mathrm { y } } = \left[ \begin{array} { c } \frac { 5 } { 8 } \\ \frac { 3 } { 8 } \\ 0 \\ 0 \end{array} \right]\)
• D) \(\hat { \mathrm { y } } = \left[ \begin{array} { c } \frac { 7 } { 8 } \\ \frac { 1 } { 8 } \\ 0 \\ 0 \end{array} \right]\)

---

Definitions:

Forecast Quality

The measure of how accurate and reliable forecasted data is when compared to actual outcomes.

Regression Analysis

A statistical method used for estimating the relationships among variables, often used to predict the value of a dependent variable based on one or more independent variables.

Benchmark Risk

The risk associated with not being able to meet or exceed the performance of a benchmark index or standard.

Treynor-Black Portfolio

A portfolio optimization model that blends a passive (market index) portfolio and an actively managed portfolio to achieve superior returns.