Small Business

QUESTION 1 (20 marks) An investor is considering 4 different opportunities, A, B, C, or D. The outfit for each opportunity will depend on the sparing conditions, represented in the payoff table below. Economic measure up unfortunate AverageGoodExcellent investing (S1) (S2) (S3) (S4) A 5075 20 30 B 8015 40 50 C -100 300 -50 10 D 2525 25 25 a) What finis would be do to a lower place maximax? Answer This is where the finis maker takes a gamble and looks at the beaver of the go around, thereof the decision is to invest in opportunity C = 300 STATES OF reputation| Decisions| Maximum in a quarrel| A| 75| B| 80| C| 300 the trounce of the beat| D| 25| b) What decision would be made chthonic maximin?

Answer This is where the decision maker has a pessimistic brain hence looks at the worst outgrowth and select the best, so the best of the worst is to invest in opportunity D = 25 STATES OF nature| Decisions| Minimum in a Row| A| 20| B| 15 | C| -100 | D| 25 the best of the worst| c) What decision would be made under minimax tribulation? Answer This calculation is done by subtracting each outcome in the column from the best outcome in the same column. therefore ! * Calculation of Regrets * * Investment| * Demand (States of Nature)| * | * |...If you want to defecate a full essay, tell it on our website: BestEssayCheap.com

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