A Decision Tree Indicates a 30% Chance of Making a $250,000

question 19

Multiple Choice

A decision tree indicates a 30% chance of making a $250,000 profit and a 70% chance of sustaining a $140,000 loss. Given this, the project should be:

• A) accepted because the amount of potential profit exceeds the amount of potential loss.
• B) rejected because there is more than a 50% chance of loss.
• C) accepted because the expected value is positive before discounting.
• D)rejected because the expected value is negative before discounting.

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Definitions:

Self-reinforcement

The process of rewarding oneself to encourage a pattern of behavior, enhancing the likelihood of repeating desirable behaviors.

Superego

Represents the part of a person's mind that acts as a self-critical conscience, reflecting social standards learned from parents and teachers.

Conscience

An inner feeling or voice acting as a guide to the rightness or wrongness of one's behavior, often based on moral or ethical principles.

Self-efficacy

A person's belief in their own capability to execute behaviors necessary to produce specific performance attainments.