Assume That One of Two Possible Outcomes Will Follow a Decision

question 49

Multiple Choice

Assume that one of two possible outcomes will follow a decision. One outcome yields a $75 payoff and has a probability of 0.3; the other outcome has a $125 payoff and has a probability of 0.7. In this case the expected value is:

• A) $85.
• B) $60.
• C) $110.
• D) $35.

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Definitions:

Serotonin

A chemical messenger in the brain crucial for maintaining stable mood, as well as promoting feelings of contentment and joy.

Peripheral Nervous System

The part of the nervous system outside the brain and spinal cord, which connects the central nervous system to limbs and organs.

Sympathetic Nervous System

Part of the autonomic nervous system that prepares the body for physical activity by increasing heart rate, constricting blood vessels, and raising blood pressure.

Parasympathetic Nervous System

The division of the autonomic nervous system that calms the body, conserving its energy.