Using the following payoff table, find out the Expected Monetary Value $($EMV$)$ and Risk $($standard deviation$)$ for each of the decisions. All the three outcomes have equal probabilities.

Use Excel for calculations.

Based on the EMV, which decision do you prefer?

Which of these decision is least risky $($lowest standard deviation$)?$

Based on Maximin criterion, which is the best decision? Explain.

Based on Maximax criterion, which is the best decision? Explain.

Decisions Outcome $1$ Outcome $2$ Outcome $3$

D$1$ $$300$ $$300$ $$300$

D$2-$$$200$ $$400$ $$500$

D$3$ $$200$ $$300$ $$400$

D$4$ $$400-$$$100$ $$700$