The following payoff matrix shows the various profit outcomes for 3 projects, A, B, and C, under 2 possible states of nature: the product price is $15 or the product price is $25.
Profit
Profit P= $15 P= $25
A 60 80
B -28 160
C 40 100
Using the maximax rule, the decision maker would choose:
a. A
b. B
c. C
d. Impossible to say from the information given.
Answers: 1
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