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:

Covalent Compound

A chemical compound formed by the sharing of pairs of electrons between atoms.

Dichlorodifluoromethane

A chemical compound once widely used as a refrigerant and propellant but now recognized for its ozone-depleting properties.

Strontonium

A chemical element with the symbol Sr, known for its use in fireworks and as a component in certain alloys.

Oxide Ion

An ion consisting of oxygen and carrying a negative two charge, represented as O^2-.