Scenario 5.4: Suppose an Individual Is Considering an Investment in Which There

question 58

Multiple Choice

Scenario 5.4:
Suppose an individual is considering an investment in which there are exactly three possible outcomes, whose probabilities and payoffs are given below:
The expected value of the investment is $25. Although all the information is correct, information is missing.
-Refer to Scenario 5.4. What is the probability of outcome B?

• A) 0
• B) -0.5
• C) 0.5
• D) 0.4
• E) 0.2

---

Definitions:

Family Friendly

Policies or practices that are supportive of employees' family responsibilities, such as flexible working hours or parental leave.

Job Design Theory

A concept in organizational psychology that focuses on organizing work tasks to improve job satisfaction, efficiency, and productivity.

Motivate

To provide reasons, encouragement, or incentives for individuals to behave in a desired way or even pursue certain goals.

Self-actualization

A psychological concept referring to the realization or fulfilment of one's talents and potentialities, considered as a drive or need present in everyone.