SCENARIO 19-1
the Following Payoff Table Shows Profits Associated with a Set

question 73

Multiple Choice

SCENARIO 19-1
The following payoff table shows profits associated with a set of 3 alternatives under 2 possible states
of nature. $\begin{array}{crrr}\text { States } & A 1 & A 2 & A 3 \\\hline 1 & 12 & -2 & 8 \\2 & 4 & 10 & 5\end{array}$

where: $\quad S 1$ is state of nature 1 $\quad$$A 1$ is action alternative 1
$\quad$$\quad$$\quad$$S 2$ is state of nature 2 $\quad$$A 2$ is action alternative 2
$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$A 3$ is action alternative 3
-Referring to Scenario 19-1, if the probability of S1 is 0.4, then the probability of S2 is

• A) 0.4
• B) 0.5
• C) 0.6
• D) 1.0

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Definitions:

Reference Group

A social group that an individual uses as a standard for evaluating themselves and their own behavior.

Organizational Operations

The activities and practices involved in running a business or other organization effectively, including planning, strategy, and execution of various functions.

Mandate

An authoritative command or instruction, often given by voters to elected officials or by higher authorities to subordinates.

Commonsense Notions

Widely held beliefs or judgments that are seen as innate to human cognition without the need for detailed empirical evidence.