Question: i need the answer now please (25 points) A company is considering to implement 1 out of 4 potential strategies for next year strategy 1,
(25 points) A company is considering to implement 1 out of 4 potential strategies for next year strategy 1, 2, 3 or 4. Depending on the market conditions next year the outcomes will vary. It is unknown which market condition will occur during next year, and the payoff table is the following: States of Nature Market Conditions Market Conditions Market Conditions Strategy Improve Remain Worsen 1 $18,400 $10,600 $1,400 2 $18,200 $11,000 $4,200 3 $19,400 $9,600 $400 4 $21,000 $10,000 -$2,000 Instructions: Answer the following questions a) (5 points) Which strategy do you recommend based on the Maximax rule for decision making? b) (5 points) Which strategy do you recommend based on the Maximin rule for decision making? c) (5 points) Which strategy do you recommend based on the Minimax Regret rule for decision making? d) (10 points) Which decision making rule from the ones above would you recommend if the decision maker is a risk averse person? explain briefly why. Maximum file size: 100MB, maximum number of files: 2 +
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