Suppose you have a choice of three projects to choose from. Here the expected profits from these projects under the following economic scenarios: Project Poor/Fair Moderate/Stable Strong/Booming A -200 $400 $700 B -700 600 1200 C 100 500 900 Suppose no probabilities are given for the different economic scenarios in the above table. A) What would be your decision under the Optimistic approach? Explain. B) What would be your decision under the Conservative approach? Explain. C) Create an opportunity loss table. Determine what the decision should be using the Minimax Regret approach. Explain.
Suppose you have a choice of three projects to choose from. Here the expected
profits from these projects under the following economic scenarios:
Project Poor/Fair Moderate/Stable Strong/Booming
A -200 $400 $700
B -700 600 1200
C 100 500 900
Suppose no probabilities are given for the different economic scenarios in the
above table.
A) What would be your decision under the Optimistic approach? Explain.
B) What would be your decision under the Conservative approach? Explain.
C) Create an opportunity loss table. Determine what the decision should be
using the Minimax Regret approach. Explain.
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