Scenario 5.1: Aline and Sarah Decide to Go into Business Together as Together

question 68

Multiple Choice

Scenario 5.1:
Aline and Sarah decide to go into business together as economic consultants. Aline believes they have a 50-50 chance of earning $200,000 a year, and that if they don't, they'll earn $0. Sarah believes they have a 75% chance of earning $100,000 and a 25% chance of earning $10,000.
-Refer to Scenario 5.1. The expected value of the undertaking,

• A) according to Sarah, is $75,000.
• B) according to Sarah, is $100,000.
• C) according to Sarah, is $110,000.
• D) according to Aline, is $200,000.
• E) according to Aline, is $100,000.

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Definitions:

Hypnosis

A trance-like state of focused attention, reduced peripheral awareness, and increased suggestibility.

Central Nervous System

The part of the nervous system consisting of the brain and spinal cord, responsible for processing information and controlling responses.

Nociceptors

Specialized sensory receptors that detect signals from damaged tissue and transmit information about pain to the nervous system.

Pain-Triggering Signals

Neurological transmissions that inform the brain of potential harm, leading to the experience of pain.