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

question 91

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 minimax regret?

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Definitions:

Performance Measure

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Performance Measure

Quantitative or qualitative indicators used to evaluate the effectiveness, efficiency, and quality of an organization's activities or employee's work.