Which of the Following Statement Is FALSE About the Expected

question 64

Multiple Choice

Which of the following statement is FALSE about the expected value approach to make decisions under risk?

• A)It assumes that the decision maker is rational and will choose the optimum decision with the highest expected value.
• B)It ignores the elements other than monetary profits.
• C)It takes irrational factors into consideration.
• D)It ignores factors such as quality of life or the current monetary status of the decision maker.

---

Definitions:

Social Dumping

The practice of companies moving production to countries with lower labor standards or costs, often leading to job loss and reduced labor conditions in the originating country.

Labor Cooperation

The collaboration between workers, unions, and sometimes employers, to achieve shared goals, improve working conditions, and enhance productivity.

U.S. Companies

Corporations, businesses, or enterprises that are founded, headquartered, or primarily operate in the United States.

Charter

A formal document or grant bestowing rights, privileges, or authority, often used to establish towns, cities, organizations, or institutions.