Question

Given the pay-off table below showing the profit a firm might expect in a foreign country for three alternative industry investments (X, Y, Z) under different levels of GDP Growth. Economist have assigned probabilities .2, .3, .4, .1 to the possible GDP Growth levels A, B, C, D, respectively. Find the preferred investment alternative.

What is the Maximax? (value) *

Answer 1

Answer:

Given the pay-off table below showing the profit a firm might expect in a foreign country for three alternative industry investments (X, Y, Z) under different levels of GDP Growth. Economist have assigned probabilities .2, .3, .4, .1 to the possible GDP Growth levels A, B, C, D, respectively. Find the preferred investment alternative.

What is the Maximax? (value