What Decision Should Be Made Under Minimax Regret

question 47

Short Answer

$$\begin{array} { | l | c | c | c | } \hline & s _ { 1 } & s _ { 2 } & s _ { 3 } \\\hline \mathrm { d } _ { 1 } & 250 & 750 & 500 \\\hline \mathrm { d } _ { 2 } & 300 & - 250 & 1200 \\\hline \mathrm { d } _ { 3 } & 500 & 500 & 600 \\\hline\end{array}$$
What decision should be made under minimax regret?

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Definitions:

Retained Earnings

The portion of net earnings not paid out as dividends but retained by the company to reinvest in its core business or to pay debt.

Preferred Stockholders

Investors who own preferred shares in a company, with rights to dividends before common stockholders and priority in asset distribution.

Dividends in Arrears

Dividends on preferred stock that have been declared but not paid to shareholders.