Exhibit 14.2 The Following Questions Are Based on the Information Below

question 49

Multiple Choice

Exhibit 14.2
The following questions are based on the information below.
An investor is considering 4 investments, A, B, C and leaving his money in the bank. The payoff from each investment is a function of the economic climate over the next 2 years. The economy can expand or decline. The following payoff matrix has been developed for the decision problem.
-Refer to Exhibit 14.2. What formula should go in cell H5 and copied to H6:H8 of the Regret Table above to implement the minimax regret decision rule?

• A) =MAX(MAX(F5:G5))
• B) =MIN(F5:G5)
• C) =AVERAGE(F5:G5)
• D) =MAX(F5:G5)

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