Consider the Following Payoff Matrix Facing Harry and Sally When $\quad$

question 65

Multiple Choice

Consider the following payoff matrix facing Harry and Sally when each chooses to go to the coffee shop listed. Harry wants to avoid Sally at the coffee shop and is not happy when Sally ends up in the same shop he chooses. Sally would like to see Harry, and so she is not happy when Harry ends up in a different coffee shop. $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$$\text { Haryy }$
$\begin{array}{|l|l|l|l|}\hline & & {\text { Starbucks }} & {\text { Dunkin Donuts }} \\\hline \text { Sally } & \text { Starbucks } & \text { H: }-1, \mathrm{~S}: 1 & \text { H: } 1, \mathrm{~S}:-1 \\\hline & \text { Dunkin Donuts } & \text { H: } 1, \mathrm{~S}:-1 & \text { H: }-1, \mathrm{~S}: 1 \\\hline\end{array}$
Assuming that Sally and Harry go to the coffee shop each day, what is Harry's best strategy?

• A) Go to Starbucks because Sally won't go there.
• B) Go to Dunkin' Donuts because Sally won't go there.
• C) Go to Starbucks one day and Dunkin' Donuts the next and maintain that pattern.
• D) Randomly choose between going to Starbucks and going to Dunkin' Donuts.

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Definitions:

Budget Performance Report

A financial report that compares actual financial results to the budgeted amounts for a specific period to assess performance.

Significant Variances

Large or meaningful differences between planned and actual figures in budgeting or accounting, requiring investigation.

Over Budget

Over budget refers to a situation where actual spending exceeds the planned or allocated amount for a particular budget category.

Budget

An estimate of income and expenditure for a set period of time, often used as a plan for financial operations.