Using the Table Below, Which Is the Recommended Decision Alternative

question 34

Multiple Choice

Using the Table below, which is the recommended decision alternative using the conservative approach? $$\begin{array}{l}\text { Payo ff Table }\\\begin{array} { | c | c | c | } \hline \text { Decision Alternative } & \text { State of Nature 1 } & \text { State of Nature 2 } \\\hline \text { D1 } & 5 & 7 \\\hline \text { D2 } & - 4 & 1 \\\hline \text { D3 } & 1 & - 3 \\\hline \text { D4 } & 10 & 2 \\\hline \text { D5 } & 6 & 4 \\\hline\end{array}\end{array}$$

• A)D1
• B)D5
• C)D2
• D)D3

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Definitions:

Procrastinate

The action of delaying or postponing tasks or decisions, often leading to stress or missed deadlines.

Consistent

Referring to the characteristic of being steady, reliable, and uniform over time.

Over Time

This term refers to the concept of a duration or period extending beyond the usual or expected time, often used in contexts ranging from work hours to the study of change.

Behavioral Economics

The subfield of economics that integrates the insights of psychology