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TABLE 17-1
the Following Payoff Table Shows Profits Associated with a Set

question 51

Multiple Choice

TABLE 17-1
The following payoff table shows profits associated with a set of 3 alternatives under 2 possible states of nature.
States  A1  A2 A3 1122824105\begin{array}{llcc} \text {States } &\text { A1 }&\text { A2 }&\text {A3 }\\\hline1&12&-2&8\\2&4&10&5\end{array}


where:\text {where:}\quad \quad S1 is state of nature 1 \text {S1 is state of nature 1 }\quad A1 is action alternative 1\text {A1 is action alternative 1}
\quad \quad \quad \quad \quad S2 is state of nature 2\text {S2 is state of nature 2}\quad  A2is action alternative 2\text { A2is action alternative 2}
\quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad A3 is action alternative3  \text {A3 is action alternative3 }
-Referring to Table 17-1, if the probability of S1 is 0.5, what is the return to risk ratio for A3?

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Definitions:

Hide Purpose

Concealing the true intention or objective behind an action, statement, or strategy, typically to deceive or mislead.

Selling Points

Key attributes or advantages of a product or service that are emphasized in marketing to attract potential buyers.

Benefits

Advantages or positive outcomes that result from a specific action, policy, or product, contributing to well-being or success.

Indirect Approach

A method of communication where the main point is not directly stated but implied.

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