Question: A decision maker has prepared the following payoff table. States of Nature Alternative High Low Buy 85 -10 Rent 70 45 Lease 45 40 Using

A decision maker has prepared the following payoff table.

States of Nature
Alternative High Low
Buy 85 -10
Rent 70 45
Lease 45 40

Using the Maximax criterion, what is the best decision and the expected payoff?

Best decision

a)Buy

b) rent

C) Lease

Payoff

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