Heading: Analyzing Risky Decisions

question 29

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 cost of obtaining information to determine Event 1 and Event 2 is $5, what is the value of perfect information?

• A)-1.96
• B)0
• C)3.04

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Definitions:

Negative Reinforcement

A process in operant conditioning where a response is strengthened by stopping, removing, or avoiding a negative outcome or aversive stimulus.

Withdrawing

The act of pulling back or removing oneself from a particular situation, interaction, or engagement.

Primary Reinforcer

A stimulus that satisfies a basic need or inherently reinforces a behavior, such as food or water.

Water

A transparent, tasteless, odorless, and nearly colorless chemical substance, composed of hydrogen and oxygen (H2O), that is the main constituent of Earth's hydrosphere and the fluids of most living organisms.