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

question 7

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. The decision maker has discovered a firm that will, for a fee of $1,000, make her position-risk free. How much better off will her firm be if she takes this firm up on its offer?

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

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Definitions:

J1939 Data Bus

The physical neural network of a CAN 2.0 network bus using J1939 protocols consisting of a twisted two-wire pair, SA stubs, and two terminating resistors. Used as the primary powertrain bus even in systems using multiple auxiliary buses. Theoretically capable of speeds of up to 1 Mb/s but usually maxed out at 500 Kb/s in current applications.

ECU Output

The signals or commands sent out by an Engine Control Unit to various systems within a vehicle.

Refrigerant Condition

Refers to the state of the refrigerant in a cooling system, including its pressure, temperature, and phase (liquid or gas).

Over-Charged

Refers to a battery or electrical device that has been charged beyond its maximum capacity, potentially causing damage or reducing lifespan.