Three Companies (A, B, and

question 200

Essay

Three companies (A, B, and
C)are to be ranked first, second, and third in a list of
companies with the highest customer satisfaction.
a. List all the possible sets of rankings for these top three companies.
b. Assuming that all sets of rankings are equally likely, what is the probability that
Company A will be ranked first, Company B second, and Company C third?
c. Assuming that all sets of rankings are equally likely, what is the probability that
Company B will be ranked first?

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Definitions:

Total Utility

The complete contentment derived from the consumption of a specific amount of a product or service.

Fair Bet

A gamble where the expected value of the potential outcomes is equal, implying that there is no net advantage or disadvantage to participating.

Zero Sum Game

A situation in game theory in which one participant's gains result exactly from losses incurred by other participants.

Expected Value

A calculated average of all possible values in a given probability distribution, weighted by the likelihood of each outcome.