Exhibit 14.8 The Following Questions Use the Information Below

question 91

Multiple Choice

Exhibit 14.8
The following questions use the information below.
A company needs to buy a new insurance policy. They have three policies to choose from, A, B and C. The policies differ with respect to price, coverage and ease of billing. The company has developed the following AHP tables for price and summary. The other tables are not shown due to space limitations.
-A "risk averse" decision maker assigns the ____ relative utility to any payoff but has a(n) ____ marginal utility for increased payoffs.

• A) largest; increasing
• B) largest; diminishing
• C) smallest; diminishing
• D) smallest; increasing

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Definitions:

Work Motivation

The set of psychological forces that influence an individual's behavior in a work setting, including their energy, direction, and persistence.

Work Outcomes

The results or outputs of an employee's work performance, including productivity, efficiency, and quality of work.

Expectancy Theory

A theory of motivation proposing that people's actions are driven by the anticipated results of those actions.

Workers' Expectancies

The beliefs or anticipations employees hold regarding outcomes related to their job efforts or performance.