1. Your parents want to invest in the hospitality business . The profits your parents will get will be shown in this table below : State of Nature Decision Stable Increase Houses 70.000 30.000 Shopping centre Lease B&B 105.000 20.000 40.000 40.000 Please determine the best investment according to the following decision : А. Махimax В. Махimin C. Minimax regret D. Hurwicz (alpha = 0,2) E. Equal likelihood
1. Your parents want to invest in the hospitality business . The profits your parents will get will be shown in this table below : State of Nature Decision Stable Increase Houses 70.000 30.000 Shopping centre Lease B&B 105.000 20.000 40.000 40.000 Please determine the best investment according to the following decision : А. Махimax В. Махimin C. Minimax regret D. Hurwicz (alpha = 0,2) E. Equal likelihood
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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Transcribed Image Text:1. Your parents want to invest in the hospitality business
The profits your parents will get will be shown in this
table below :
State of Nature
Decision
Stable
Increase
Houses
70.000
30.000
Shopping centre
Lease B&B
105.000
20.000
40.000
40.000
Please determine the best investment according to the
following decision :
А. Махimax
В. Махimin
C. Minimax regret
D. Hurwicz (alpha = 0,2)
E. Equal likelihood
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