A Person Is Trying to Decide If He or She

question 4

Multiple Choice

A person is trying to decide if he or she should buy a lottery ticket. The ticket costs $2.00. If the ticket is a winner,the prize would be $1,000. Knowing that winning $1,000 is not a certain outcome (state of nature) ,the person finds that the probability of winning is 0.001. Based on this information,the following payoff table can be constructed: What is the value of perfect information?

• A)$1.00
• B)$0.998
• C)$1.998
• D)Cannot be computed

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Definitions:

Political Skills

The ability to understand and influence others in a way that promotes personal, team, or organizational objectives.

Developing

The process of growth, expansion, or evolution, often involving passage through various stages.

Internal Locus

The belief that one has control over their life and outcomes based on their own efforts and actions.

External Matters

Issues or factors that originate outside of an individual or system and can impact its functioning.