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Consider the Following Payoff Table with Amounts in $ Millions

Question 41

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 are indifferent between investments d<sub>2</sub> and d<sub>3</sub>,then the probability that you assign to the state of nature S<sub>2</sub> is __________. A) at least 0.45 B) at most 0.5 C) 0) 5 D) at least 0.5 The column with investments lists mutually exclusive investment decisions.If you use the expected value criterion and you are indifferent between investments d2 and d3,then the probability that you assign to the state of nature S2 is __________.


A) at least 0.45
B) at most 0.5
C) 0) 5
D) at least 0.5

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