Use the Following to Answer the Questions Below

question 70

Multiple Choice

Use the following to answer the questions below.
In choosing between three new jobs, Joe MBA considers the potential payoffs over the next three years. The following table contains the payoffs, given the speed of promotion in each of the organizations. The probability of fast promotion is 0.6, and the probability of slow promotion is 0.4.

-Use the information in Table A.3. Which alternative is best, given the matrix payoff?

• A) The A alternative would be chosen using the maximin decision rule.
• B) The B alternative would be chosen using the maximax decision rule.
• C) The C alternative would be chosen using the Laplace decision rule.
• D) The C alternative would be chosen using the maximin decision rule.

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Definitions:

Real Interest Rates

The interest rate adjusted for inflation, representing the true cost of borrowing and the true yield on an investment.

Irving Fisher

An American economist known for his contributions in the fields of economics and statistics, including the theory of interest and the Fisher equation.

Proprietors' Income

The income earned by the owners of unincorporated businesses.

Capitalist Income

The earnings from capital investment, including profits, interest, and dividends, attributed to owners in a capitalist economy.