Exhibit 21-2 Below You Are Given a Payoff Table Involving Three States

question 30

Multiple Choice

Exhibit 21-2
Below you are given a payoff table involving three states of nature and two decision alternatives. The probability that S₁ will occur is 0.1; the probability that S₂ will occur is 0.6.
-Refer to Exhibit 21-2. The expected value of the best alternative equals

• A)29
• B)105
• C)12
• D)38.5

---

Definitions:

Systematic Desensitization

A behavioral therapy technique used to treat phobias and other behavior disorders through controlled exposure to the stimuli causing the disorder, combined with relaxation techniques to reduce anxiety.

Psychodynamic Therapy

A therapeutic approach emphasizing the exploration of the unconscious mind and its influence on human behavior, rooted in psychoanalytic theory.

Cognitive Therapy

A form of psychotherapy that focuses on changing unhelpful thinking patterns, beliefs, and attitudes to improve emotional regulation and develop personal coping strategies.

Aversive Conditioning

A form of behavior modification that involves associating an unwanted behavior with an unpleasant stimulus to reduce the behavior's occurrence.