The following is a payoff table giving profits for various situations. States of Nature Alternatives A Alternative 1 140 160 140 Alternative 2 220 120 70 Alternative 3 120 140 200 Do Nothing What decision would a pessimist make?

The following is a payoff table giving profits for various situations. States of Nature Alternatives A Alternative 1 140 160 140 Alternative 2 220 120 70 Alternative 3 120 140 200 Do Nothing What decision would a pessimist make?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

The following is a payoff table giving profits for various situations.
States of Nature
Alternatives
A
Alternative 1
140
160
140
Alternative 2
220
120
70
Alternative 3
120
140
200
Do Nothing
What decision would a pessimist make?

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