A Decision Maker's Worst Option Has an Expected Value of $1,000

question 124

Multiple Choice

A decision maker's worst option has an expected value of $1,000, and her best option has an expected value of $3,000. With perfect information, the expected value would be $5,000. What is the expected value of perfect information?

• A)$5,000
• B)$4,000
• C)$3,000
• D)$2,000
• E)$1,000

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Definitions:

Resistance To Extinction

The persistence of learned behavior or response patterns even after the removal of the reinforcing stimulus.

Continuous Reinforcement

A learning process where a behavior is reinforced each time it occurs, leading to faster learning but quicker extinction once reinforcement stops.

Partial Reinforcement

A conditioning strategy where only a subset of responses is rewarded, leading to more resilient behavior than continuous reinforcement.

Partial Reinforcement

A conditioning principle where only some of the responses made are followed by reinforcement, leading to more resistant behavior to extinction.