Dan Hein Owns the Mineral and Drilling Rights to a 1,000

question 29

Multiple Choice

Dan Hein owns the mineral and drilling rights to a 1,000 acre tract of land.If he drills a well and does not strike oil, his net loss will be $50,000, but if he drills a well and strikes oil, his net gain will be $100,000.If he does not drill, his loss is the cost of the mineral and drilling rights, which amount to $1000.For Dan's decision problem, the variable "net loss of $50,000" is one of the ___________.

• A)payoffs
• B)decision alternatives
• C)states of nature
• D)revised probabilities
• E)prior probabilities

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Definitions:

Resilience

Resilience is the psychological ability of an individual to adapt well in the face of adversity, trauma, tragedy, threats, or significant sources of stress, often enabling personal growth and emotional strength.

High-Risk Approach

A strategy focusing on the prevention or mitigation of risks by identifying and managing those most likely to experience negative outcomes or posses high-risk factors.

Universal Approach

An approach to prevention programs designed to include all individuals in a certain geographical area (for example, the neighbourhood, the city, the province) or a certain setting (for example, school, the workplace, a public housing complex).

Promotion/Prevention Programs

Initiatives designed to enhance positive health behaviors and outcomes (promotion) while reducing the risk or impact of negative health conditions or behaviors (prevention).