Multiple Choice
An individual must choose between two business opportunities. If he invests in A, then he will get a $20 profit if the economy is expanding and an $8 loss otherwise. If he invests in B, then he will get a $10 profit if the economy is expanding and break even otherwise. Apply the maximin and minimax regret criteria to this decision.
A) Maximin: Invest in A. Minimax regret: Invest in B.
B) Maximin: Invest in B. Minimax regret: Invest in B.
C) Maximin: Invest in A. Minimax regret: Invest in A.
D) Maximin: Invest in B. Minimax regret: Invest in A.
Correct Answer:
Verified
Correct Answer:
Verified
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