At a Decision Point in a Decision Tree, Which Machine

question 19

Multiple Choice

At a decision point in a decision tree, which machine would you select when trying to maximize payoff when the anticipated benefit of selecting machine A is $45,000, with a probability of 90%; the expected benefit of selecting machine B is $80,000, with a probability of 50%; and the expected benefit of selecting machine C is $60,000, with a probability of 75%?

• A) Machine A
• B) Machine B
• C) Machine C
• D) You would be indifferent between machines A and C.
• E) You would be indifferent between machines A and B.

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Definitions:

Corporate Settings

Environments or contexts related to corporations or large business organizations where professional activities take place.

Race and Organizing

Examining how race and ethnicity influence and shape organizational structures, practices, and dynamics.

Gay Friendly

An environment or policy that is open, accepting, and supportive of LGBTQ+ individuals, ensuring equal rights and freedom from discrimination.

Sexuality-Based Discrimination

Unfair treatment of individuals based on their sexual orientation or gender identity, often manifesting in employment, education, and other societal arenas.