2. Sample Payoff Matrix 70 35 - 20 New Marketing Programme 60 30 - 15 New Product Design 40 25 - 40 New Plant Boom Normal Recession Strategy Payoff Matrix : Profits ( Rs, Crores) for Each Strategy – State of Nature (Economic Condition) Combination
3.
4. Probability Distribution for Two Investment Alternatives 250 0.30 Rapid Inflation 200 0.50 Moderate Inflation 150 0.20 No Inflation Investment I 400 0.30 Rapid Inflation 200 0.50 Moderate Inflation 100 0.20 No Inflation Investment I Outcome (Xi) Probability (Pi) State of Nature Probability Distribution for Two Investment Alternatives