Given the pay-off table below showing the profit (present value Dollar), a firm might expect in a foreign country for three alternative factory investments (X,Y, and Z) under different levels of inflation. Economists have assigned probabilities of 0.2,0.3,0.4, and 0.1 to the possible inflation levels A,B,C and D, respectively. Define and find the preferred investment alternative using criteria of a) Maximax, b) Maximin, c) Laplace, d) Maximum probability, and e) Expected monetary value. SOLUTION