Which of the Following Terms Best Describes the Principle Stating

question 13

Multiple Choice

Which of the following terms best describes the principle stating that when allocating effort among a variety of tasks,employees will tend to exert more effort toward those tasks that are rewarded?

• A)Effort allocation principle
• B)Premium principle
• C)Compensation principle
• D)Risk-reward principle
• E)Multitask principle

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Definitions:

Expected Value

The average outcome of a random event when considering all possible outcomes and their probabilities.

Probability

The measure of the likelihood that an event will occur, expressed as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.

Von Neumann-Morgenstern Utility Function

A utility function theory based on expected utility, fundamental in making rational decisions under uncertainty, emphasizing outcomes' probabilities.

Probability

The measure of the likelihood that an event will occur.