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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Credit For The Elderly

A tax credit available to certain elderly and disabled individuals to reduce the amount of taxes owed.

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Portions of Social Security payments that are not subject to federal income tax under certain conditions.