An Investor Is Consider Four Different Opportunities, A, B, C

question 48

Essay

An investor is consider four different opportunities, A, B, C, or D. The payoff for each opportunity will depend on the economic conditions, represented in the payoff table below.
$$~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~{ \text { Economic Condition } } \\\begin{array} { c} \text { Investment } & \begin{array} { c } \text { Poor } \\\text { (S1) }\end{array} & \begin{array} { c } \text { Average } \\\left( \mathbf { S } _ { \mathbf { 2 } } \right)\end{array} & \begin{array} { c } \text { Good } \\\left( \mathbf { S } _ { \mathbf { 3 } } \right)\end{array} & \begin{array} { c } \text { Excellent } \\\left( \mathbf { S } _ { \mathbf { 4 } } \right)\end{array} \\\text { A } & 50 & 75 & 20 & 30 \\\text { B } & 80 & 15 & 40 & 50 \\\text { C } & - 100 & 300 & - 50 & 10 \\\text { D } & 25 & 25 & 25 & 25\end{array}$$
-What decision would be made under maximin?

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Definitions:

IQ

An abbreviation for Intelligence Quotient, a score derived from standardized tests designed to measure human intelligence and cognitive abilities.

Meritocracy

Meritocracy is a system where individuals are rewarded and advanced based on their talents, abilities, and effort rather than their social status or background.

Homogeneous

Consisting of parts or elements that are all the same or similar in nature, often used to describe groups, substances, or systems that are uniform in composition.

Educational Attainment

The greatest degree of schooling that someone has achieved.