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

question 37

Multiple Choice

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


$\text {where:}$$\quad$$\quad$ $\text {S1 is state of nature 1 }$$\quad$$\text {A1 is action alternative 1}$
$\quad$$\quad$$\quad$$\quad$$\quad$$\text {S2 is state of nature 2}$$\quad$$\text { A2is action alternative 2}$
$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text {A3 is action alternative3 }$


-Referring to Table 17-1, if the probability of S1 is 0.2 and S2 is 0.8, what is the expected monetary value of A1?

• A) 8
• B) 2.4
• C) 5.6
• D) 16

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Definitions:

Therapy

A general term for the treatment of disorders or illness, mental or physical, through systematic intervention, often involving specific techniques or approaches.

Positive Response

An affirmative or favorable reaction to a stimulus or situation.

Depression

A mood disorder characterized by persistent feelings of sadness, emptiness, or hopelessness, along with other emotional and physical symptoms.

Session

A meeting or period devoted to a particular activity, such as therapy, training, or research, usually characterized by a defined start and end time.