As part of their investment strategy, the Carringtons have decided to put $100,000 into stock market investments and also into purchasing precious metals. The performance of the investments depends on the state of the economy in the next year. In an expanding economy it is expected that their stock market investment will outperform their investment in precious metals, whereas an economic recession will have precisely the opposite effect. Suppose the following payoff matrix gives the expected percent increase or decrease in the value of each investment for each state of the economy:





a. $20,660

b. $2,780

c. $25,220

d. $7,340

e. $14,000


e. $14,000

Mathematics

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