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    The document presents a decision making scenario where an individual has $1 billion to invest across different investment options: gold, property, bonds, stocks, and mutual funds. The investments have potential outcomes of growing, stable, or declining, with corresponding monetary returns provided in a table. The individual is asked to determine their optimal investment decision using several decision making criteria: maximax, maximin, minimax regret, Hurwicz, Laplace, and expected monetary value.

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    The document presents a decision making scenario where an individual has $1 billion to invest across different investment options: gold, property, bonds, stocks, and mutual funds. The investments have potential outcomes of growing, stable, or declining, with corresponding monetary returns provided in a table. The individual is asked to determine their optimal investment decision using several decision making criteria: maximax, maximin, minimax regret, Hurwicz, Laplace, and expected monetary value.

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    10 views1 page

    Task

    Uploaded by

    Khaerunnisa
    The document presents a decision making scenario where an individual has $1 billion to invest across different investment options: gold, property, bonds, stocks, and mutual funds. The investments have potential outcomes of growing, stable, or declining, with corresponding monetary returns provided in a table. The individual is asked to determine their optimal investment decision using several decision making criteria: maximax, maximin, minimax regret, Hurwicz, Laplace, and expected monetary value.

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    Task : Decision Making Under Risk and Uncertainty

    If you have money $1 billion

    There are several consequences from decision table below (in million) :

    Kind of Investment Growing Stable Declining


    Gold 20 25 10
    Property 120 100 50
    Bonds 100 45 5
    Stocks 150 45 -10
    Mutual Funds 80 40 -5

    Determine your decision by:


    a. Maximax
    b. Maximin
    c. Minimax Regret
    d. Hurwicz (α : 0.7)
    e. Laplace
    f. EMV (Expected Monetary Value) (Growing α: 0.4; Stable α:0.2; and Declining α:0.4)

    Find your decision by yourself

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