Heading: Analyzing Risky Decisions

question 43

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 2 occurs, which decision alternative should the decision maker choose at node E?

• 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:

Plagiarism

The act of using someone else's work, ideas, or expressions without proper acknowledgment, thereby falsely presenting them as one's own original work.

Statistics

The branch of mathematics dealing with the collection, analysis, interpretation, and presentation of masses of numerical data.

Citing

The practice of acknowledging or giving credit to the sources used in research or writing.

Visual Aids

Tools such as charts, diagrams, videos, or models used to enhance the comprehension or retention of information by visual means.