The Following Payoff Table (In Thousands of Dollars) Considers Three

question 197

Multiple Choice

The following payoff table (in thousands of dollars) considers three possible levels of demand in a housing complex.Using the maximax approach, the action taken should be to ________________________ .

• A)build a small complex
• B)build a large complex
• C)build a large complex with high demand
• D)build a small complex with low demand
• E)do not build any size complex

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Definitions:

Constructs

Theoretical concepts or variables that are devised to understand and explain psychological phenomena or behaviors.

Behavior

Actions or reactions of an individual in response to external or internal stimuli.

Months

The twelve named periods into which a year is divided.

Constructive Alternativism

The idea that we are free to revise or replace our constructs with alternatives as needed.