TABLE 17-2
the Following Payoff Matrix Is Given in Dollars $$\begin{array} { c c l } & { \text { Action } } \\\text { Event } & A & B \\\hline 1 & 400 & 700 \\2 & 200 & 500\end{array}$$

question 38

Multiple Choice

TABLE 17-2
The following payoff matrix is given in dollars.
$$\begin{array} { c c l } & { \text { Action } } \\\text { Event } & A & B \\\hline 1 & 400 & 700 \\2 & 200 & 500\end{array}$$
-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 0.4 are the probabilities for the sale of 100, 200, or 400 dozen roses, respectively, what is the EVPI for buying roses?

• A) $1,500
• B) $2,600
• C) $700
• D) $1,900

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Definitions:

Implosive Therapy

A therapeutic technique where clients are exposed to their fears in a controlled environment to reduce anxiety.

Exposure Therapy

A psychological treatment that helps individuals face and gain control of fears and distressing emotions by systematic and repeated exposure to the feared object or context.

Depressive Symptoms

Manifestations of depression, which can include sadness, loss of interest or pleasure in activities, changes in weight or sleep, and feelings of worthlessness or guilt.

Behavior Therapy

A form of psychotherapy that aims to change maladaptive behaviors through conditioning and learning techniques.