An individual must choose between two business opportunities. If he invests in A, he will make $20 if the economy is expanding, $10 if it is stagnant, and lose $8 if it is contracting. If he invests in B, he will make $10 if the economy is expanding, break even if is stagnant, and make $15 if it is contracting.
a. What choice should he make using the maximin criteria? Briefly explain.
b. What choice should he make using the minimax regret criteria? Briefly explain.
c. What choice should he make using the maximax criteria?
d. What choice should he make using the equal probability criteria?