Consider the Following Payoff Table with Amounts in $ Millions

question 5

Multiple Choice

Consider the following payoff table with amounts in $ millions. The column with investments lists mutually exclusive investment decisions.If you use the expected value criterion and you are indifferent between investments d₂ and d₃,then the probability that you assign to the state of nature S₂ is __________.

• A)at least 0.45
• B)at most 0.5
• C)0)5
• D)at least 0.5

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