Heading: Analyzing Risky Decisions

question 42

Multiple Choice

Heading: Analyzing Risky Decisions
**Reference: Use the decision tree along with the given probabilities to answer the next six questions
Probability Event A = 30% Probability Event B = 70%
Probability Event 1 = 58% Probability Event 2 = 42%
Probability of Event A given that Event 1 occurs = 16%
Probability of Event B given that Event 1 occurs = 84%
Probability of Event A given that Event 2 occurs = 50%
Probability of Event B given that Event 2 occurs = 50%

-*If the decision maker chooses Decision A and Event 1 occurs, which decision alternative should the decision maker choose at node D?

• A)Decision 1
• B)Decision 2
• C)Either Decision; they both have the same expected value.
• D)Neither Decision; more information is needed.

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Definitions:

Neuroticism

A personality trait characterized by a tendency to experience negative emotions such as anxiety, anger, or depression.

Comprehensive System

An inclusive and thorough framework or method, often used to describe a complete approach to solving a problem or managing a process.

Big Five

A model describing five broad dimensions of human personality: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Sympathy

The feeling of compassion or concern for the hardships that another person encounters, often leading to a desire to alleviate their suffering.