TABLE 19-1 The Following Payoff Table Shows Profits Associated with a Set

question 33

Multiple Choice

TABLE 19-1
The following payoff table shows profits associated with a set of 3 alternatives under 2 possible states of nature
-Blossom's Flowers purchases roses for sale for Valentine's Day.The roses are purchased for $10 a dozen and are sold for $20 a dozen.Any roses not sold on Valentine's Day can be sold for $5 per dozen.The owner will purchase 1 of 3 amounts of roses for Valentine's Day: 100,200,or 400 dozen roses.Given 0.2,0.4,and 0.6 are the probabilities for the sale of 100,200,or 400 dozen roses,respectively,then the EOL for buying 200 dozen roses is

• A)$700.
• B)$900.
• C)$1,500.
• D)$1,600.

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Definitions:

Great Depression

A severe worldwide economic downturn that took place during the 1930s, leading to widespread unemployment and poverty.

Stock Market Speculation

The act of trading stocks, commodities, or other financial instruments with the aim of making profits from short-term fluctuations in their prices, often involving high risk.

Protective Tariffs

Tariffs imposed on imports to protect domestic industries from foreign competition by increasing the cost of imported goods.

Demobilized Soldiers

Demobilized soldiers are military personnel who have been discharged from active service, often following the end of a conflict or war.