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Julie Is Planning to Open a Restaurant and Is Considering

Question 19

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Julie is planning to open a restaurant and is considering two possible locations.She has estimated the payoff for each location for each of three different possible levels of restaurant popularity (state of nature)as shown below. Julie is planning to open a restaurant and is considering two possible locations.She has estimated the payoff for each location for each of three different possible levels of restaurant popularity (state of nature)as shown below. Using the minimax regret criterion,she should choose location 1. Using the minimax regret criterion,she should choose location 1.

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