Section 8.1
(12) The saddle value is 0, in the first row, second column.
The value of the game is 0.
Optimal strategy: R should always play row 1; C should always play column 2.
(16) There are two saddle values illustrated in blue. The value of the game
is 1.
[ |
1
|
-2
|
0
|
3
|
-5
|
0
|
-1
|
8
|
4
|
1
|
1
|
2
|
|
] |
Optimal strategy: R should always play row 3; C can choose between columns 2
and 3.
(24) Saddle values are blue. Value of the game is 5870 (that's good for you).
Optimal strategy:
For you: play row 1 (invest in 5-year notes)
For the economy: Play either column 1 or 2 (either fall, or no change)
[ |
5870
|
5870
|
5870
|
-2000
|
4000
|
7000
|
-5000
|
2000
|
10,000
|
|
] |