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.

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Definitions:

Thalamus

A part of the forebrain that relays information from sensory organs and other brain structures to appropriate sites on the cerebral cortex.

Limbic System

A collection of structures in the brain that includes the hippocampus, amygdala, septum, thalamus, and hypothalamus. These structures produce feelings such as pleasure, pain, anger, sexuality, fear, and affection. Referred to as the “emotional brain” and works in concert with other parts of the brain, such as the frontal lobes.

Histones

Proteins that wrap around DNA to help form chromosomes.

Chromosomes

Forty-six tiny strands of DNA, found in the nucleus of each cell of the body, which are the source of biological inheritance.