Regret Matrix

500 pts ended
An investor is considering 4 investments, A, B, C and leaving his money in the bank. The payoff from each investment is a function of the economic climate over the next 2 years. The economy can expand or decline. The following payoff matrix has been developed for the decision problem. A B C D E F G H 1 Payoff Matrix Regret Matrix 2 3 Economy Economy 4 Investment Decline Expand Investment Decline Expand 5 A 0 85 A 6 B 25 65 B 7 C 40 30 C 8 Bank 10 10 Bank ____ 11. Refer to Scenario 15-2. What formula should go in cell F5 of the Regret Matrix to compute the regret value? a. =B$5-MAX(B$5:B$8) b. =MAX(B$5:B$8)-MAX(B5) c. =MAX(B$5:B$8)-MIN(B$5:B$8) d. =MAX(B$5:B$8)-B5

Answers (1)


    View this solution... try Chegg Study


    Start Your Free Trial