The Following Is a Payoff Table Giving Profits for Various

question 5

Multiple Choice

The following is a payoff table giving profits for various situations. The probabilities for states of nature A, B, and C are 0.3, 0.5, and 0.2, respectively. If a person selected Alternative 1, what would the expected profit be?

• A) 120
• B) 133.33
• C) 126
• D) 180
• E) None of the above

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Definitions:

Points

Specific locations in space defined by coordinates in a given dimension (2D, 3D, etc.).

Indicated Pairs

Pairs of elements or numbers specified or denoted in a particular context or problem, often used in relation to graphs or sets.

Perpendicular

Describes lines or planes that intersect at a right angle (90 degrees).

Points

Positions or locations on a plane or space, represented by a set of numbers in a coordinate system.