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Consider the Following Payoff Table with Amounts in $ Millions

Question 39

Multiple Choice

Consider the following payoff table with amounts in $ millions. Consider the following payoff table with amounts in $ millions. The column with investments lists mutually exclusive investment decisions.If you use the expected value criterion and you choose investment d<sub>2</sub>,then the probability that you assign to the state of nature S<sub>1</sub> is __________. A) more than 0.25 and less than 0.67 B) more than 0.33 and less than 0.67 C) more than 0.25 and less than 0.5 D) more than 0.33 and less than 0.5 The column with investments lists mutually exclusive investment decisions.If you use the expected value criterion and you choose investment d2,then the probability that you assign to the state of nature S1 is __________.


A) more than 0.25 and less than 0.67
B) more than 0.33 and less than 0.67
C) more than 0.25 and less than 0.5
D) more than 0.33 and less than 0.5

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