Decision Criteria

posted by .

You have available five different investment strategies and their respective payoffs for various states-of-nature as shown in the chart below. Which investment would you make under the different decision criteria?

States of Nature

Sever
Decline Moderate Decline Stable Moderate Advance Strong Advance
T-Bills 3.50 3.50 3.50 3.50 3.50
Paragon (22.50) (2.00) 20.00 35.00 50.00
Luster 28.00 14.70 0.00 (10.00) (20.00)
Apex 10.00 5.00 7.00 45.00 30.00
Market (13.00) 5.00 22.00 38.00 Portfolio 47.00

Probability 0.05 0.35 0.30 0.20 0.10

Note: For the following questions, ¡§Investment¡¨ is the name of the strategy not the number, i.e., Luster, Apex, etc.

a)Maximin criteria

Answer: Investment

b)Maximax criteria

Answer:Investment
c)Equally Likely criteria
Answer:Investment
d)Criterion of realism (assume Ą = 0.6)
Answer:Investment
e)Minimax regret criteria
Answer:Investment
f)Criterion of maximum expected value
Answer:Investment

  • Some kind of math or statistics -

    Assistance needed.

    Please type your subject in the School Subject box. Any other words, such as what you typed, are likely to delay responses from a teacher who knows that subject well.

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. communication

    According to the health belief model, what 5 criteria affect people’s decision to make different healthcare decisions?
  2. ethics

    How would a utilitarian approach cause someone to make a different decision in certain cases. Can you think of cases in which a decision made would be different based on the ethical approach a person takes?
  3. Decision Analysis

    Kunfu Company is planning to build a new manufacturing and distribution facility in TT, KK, SS, CC or AA. The company has estimated the facility cost in each country will vary depending on the economic conditions prevailing. The table …
  4. business

    2. Think of a risk response plan that you have in your personal life, such as automobile, homeowner’s, or renter’s insurance. What were some of the decision criteria that influenced your decision about how much coverage to purchase?
  5. Decision Criteria

    You have available five different investment strategies and their respective payoffs for various states-of-nature as shown in the chart below. Which investment would you make under the different decision criteria?
  6. statistics

    You have available five different investment strategies and their respective payoffs for various states-of-nature as shown in the chart below. Which investment would you make under the different decision criteria?
  7. Statistics

    You have available five different investment strategies and their respective payoffs for various states-of-nature as shown in the chart below. Which investment would you make under the different decision criteria?
  8. Math

    You have available five different investment strategies and their respective payoffs for various states-of-nature as shown in the chart below. Which investment would you make under the different decision criteria?
  9. marketing

    Describe five different investment strategies. Which of these investment strategies do you personally favor?
  10. Governmental and Not-for-profit Accounting

    public colleges and universities are treated as component units of their respective primary governments (cities or states).what is the criteria under GASB Statement No. 14 for a public college or university to be excluded

More Similar Questions