Determine the best investment option using the maximin decision criteria.Group of answer choicesoffice buildingmallwarehousecondominiumsoffice park
Question
Determine the best investment option using the maximin decision criteria.
Group of answer choices:
- office building
- mall
- warehouse
- condominiums
- office park
Solution
To determine the best investment option using the maximin decision criteria, you need to follow these steps:
-
Identify the minimum payoff for each investment option. This means you need to determine the worst-case scenario for each investment (office building, mall, warehouse, condominiums, office park).
-
Once you have identified the minimum payoff for each option, choose the option with the highest minimum payoff. This is the 'maximin' decision - you are maximizing the minimum payoff.
Without specific data on the potential payoffs of each investment, I can't tell you which option is the best. However, these steps will guide you in making the decision based on the maximin decision criteria.
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