Small Business

QUESTION 1 (20 marks) An investor is considering 4 different opportunities, A, B, C, or D. The outfit for each opportunity lead depend on the stinting conditions, represented in the progeny table below. Economic Condition pitiable 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 made to a cut down place maximax? Answer This is where the termination shaping machine takes a gamble and looks at the beaver of the go around, t thus the decision is to invest in opportunity C = 300 STATES OF reputation| Decisions| Maximum in a Row| A| 75| B| 80| C| 300 the trounce of the trump out| D| 25| b) What decision would be made beneath maximin?

Answer This is where the decision maker has a pessimistic outlook hence looks at the worst issuing and select the beat out, so the surmount of the worst is to invest in opportunity D = 25 STATES OF reputation| 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. hence * Calculation of Regrets * * Investment| * Demand (States of Nature)| * | * |...If you want to throw a full essay, enact it on our website: Ordercustompaper.com

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