In Choosing Between Three New Jobs, Joe MBA Considers the Potential

question 1

Multiple Choice

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.
$$\begin{array} { | l | l | l | } \text { Alternative } & \text { Slow Promotion } & \begin{array} { l } \text { Fast } \\\text { Promotion }\end{array} \\\hline \text { A High-flying consultant } & ( \$ 180,000 ) & \$ 600,000 \\\text { B. Utility analyst } & \$ 200,000 & \$ 400,000 \\\text { C. Research assistant } & \$ 250,000 & \$ 260,000 \\\hline\end{array}$$
-Use the information in Table A.3 and the Laplace decision rule.The weighted payoff is

• A) less than $200,000 if the high-flying consultant job is selected.
• B) more than $280,000 if the Research Assistant job is selected.
• C) more than $280,000 if the utility analyst job is selected.
• D) highest for the research assistant position.

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Definitions:

Contingency Variables

Factors or conditions that can change and affect the outcome of decision-making processes or situations.

Enduring Change

A lasting transformation within an individual, organization, or society that persists over time.

Behavior

The actions or reactions of an individual or group in response to external or internal stimuli.

Learning

Learning is an enduring change in behavior that results from experience.