At a Decision Point in a Decision Tree, Which Machine

question 19

Multiple Choice

At a decision point in a decision tree, which machine would you select when trying to maximize payoff when the anticipated benefit of selecting machine A is $45,000, with a probability of 90%; the expected benefit of selecting machine B is $80,000, with a probability of 50%; and the expected benefit of selecting machine C is $60,000, with a probability of 75%?

• A) Machine A
• B) Machine B
• C) Machine C
• D) You would be indifferent between machines A and C.
• E) You would be indifferent between machines A and B.

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Definitions:

Beta Waves

Brain wave patterns associated with active, alert consciousness and cognitive thinking, typically observed in EEG recordings.

Narcolepsy

A disorder in which a person experiences excessive sleepiness during normal waking hours, sometimes going limp and collapsing.

Somnambulism

The medical term for sleepwalking, a phenomenon where a person walks or performs other complex behaviors while in a state of sleep.

REM Behavior Disorder

A sleep disorder where people physically act out vivid, often unpleasant dreams with vocal sounds and sudden, violent arm and leg movements during REM sleep stages.