For the Payoff Table Below, the Decision Maker Will Use

question 2

Essay

For the payoff table below, the decision maker will use P(s₁) = .15, P(s₂) = .5, and P(s₃) = .35. $$\begin{array} { c | r r c } &{ \text { State of Nature } } \\\text { Decision } & { \mathrm { s } _ { 1 } } & { \mathrm { s } _ { 2 } } & \mathrm {~s} _ { 3 } \\\hline d _ { 1 } & - 5,000 & 1,000 & 10,000 \\d _ { 2 } & - 15,000 & - 2,000 & 40,000\end{array}$$ What alternative would be chosen according to expected value?

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Definitions:

Conscientiousness

A personality trait characterized by organization, responsibility, and carefulness.

Long Life

Typically refers to an unusually extended lifespan in humans or other organisms, often attributed to genetic, lifestyle, or environmental factors.

Trait

A stable characteristic or quality of an individual that influences their behaviors and attitudes across different situations and over time.

Self-Monitoring

The degree to which individuals regulate and control their behavior in social settings, adjusting their actions according to social cues.