Below You Are Given a Profit Payoff Table Involving Three

question 45

Multiple Choice

Below you are given a profit payoff table involving three decision alternatives and three states of nature. ​ The probability of occurrence of s₁ is .1 and the probability of occurrence of s₂ is .3.
The expected value of perfect information is

• A) 18.1.
• B) 11.7.
• C) 51.
• D) 37.

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Definitions:

Optimism

An inclination to maintain a positive outlook and to expect the most favorable outcomes in situations.

Maslow's Hierarchy

A theory in psychology proposed by Abraham Maslow, suggesting that people are motivated by five basic categories of needs: physiological, safety, love/belonging, esteem, and self-actualization, which they pursue in a hierarchical order.

Esteem Needs

According to Maslow's hierarchy of needs, these are the fourth tier of human needs, focusing on self-esteem, respect, status, recognition, strength, and freedom.

Love And Belongingness

A human motivational need, according to Maslow's hierarchy of needs, involving interpersonal relationships, affection, group membership, and love.