A land owner is considering two actions and mortgage interest rates will affect his outcomes.The payoff table ($ million) is shown below.According to the maximin approach, the land owner should build ________________________ .

A)the active retirement community if interest rates go down
B)the active retirement community
C)townhouses/condominiums if interest rates go down
D)townhouses/condominiums
E)either the active retirement community or townhouses/condominiums

Question

A land owner is considering two actions and mortgage interest rates will affect his outcomes.The payoff table ($ million) is shown below.According to the maximin approach, the land owner should build ________________________ .

A)the active retirement community if interest rates go down 
B)the active retirement community 
C)townhouses/condominiums if interest rates go down 
D)townhouses/condominiums 
E)either the active retirement community or townhouses/condominiums

Quizplus · Accepted Answer

The Answer of A land owner is considering two actions and mortgage interest rates will affect his outcomes.The payoff table ($ million) is shown below.According to the maximin approach, the land owner should build ________________________ .

A)the active retirement community if interest rates go down 
B)the active retirement community 
C)townhouses/condominiums if interest rates go down 
D)townhouses/condominiums 
E)either the active retirement community or townhouses/condominiums

A Land Owner Is Considering Two Actions and Mortgage Interest