Which of the Following Statements Is Likely to Be Correct

question 91

Multiple Choice

Which of the following statements is likely to be correct for a decision tree which indicates a 30 percent chance of making a $250,000 profit and a 70 percent chance of sustaining a $140,000 loss?

• A)The decision should be "yes" whenever the amount of possible profit exceeds the amount of possible loss
• B)The decision should be "no" whenever there is a possibility of loss
• C)The expected value is positive before discounting
• D)The expected value is negative before discounting

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Definitions:

Language

A system of communication using sounds or symbols that enables humans to express thoughts, emotions, and knowledge.

Evolved

Having developed gradually from a simpler to a more complex form.

Maintenance Rehearsal

The mere repetition of information in the short-term store.

Rehearsal Strategy

A cognitive process that involves repeatedly practicing material to aid in memorization and learning.