Question $4(1$ point$)$

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A real estate firm is considering two investment alternatives: Office Buildings or Apartment Buildings. Expected payoffs under three possible economy scenarios are provided below.

$\backslash$table$[[,$Strong,Moderate,Weak$],[$Office Buildings,$500,-100,-250],[\backslash$table$[[$Apartment$],[$Buildings$]],200,150,-150]]$

What is the optimal decision using the Maximin method?

Min$(500,200)=200.$ Optimal Decision: Apartment Buildings

Max$(500,200)=500.$ Optimal Decision: Office Buildings

Min$(-250,-150)=-250.$ Optimal Decision: Office Buildings

Max$(-250,-150)=-150.$ Optimal Decision: Apartment Buildings