Consider the Following Decision Scenario *PV for Profits ($000) with Equally Likely States of Nature

question 85

Multiple Choice

Consider the following decision scenario: $$\begin{array} { c} { \text { State of Nature } } \\\begin{array} { | l | l | l | l | } \hline { } & \text { High } & \text { Med. } & \text { Low } \\\hline \text { A } & \$ 20 ^ { * } & 20 & 5 \\\hline \text { B } & 25 & 30 & 11 \\\hline \text { C } & 30 & 12 & 13 \\\hline \text { D } & 10 & 12 & 12 \\\hline \text { E } & 50 & 40 & - 28 \\\hline\end{array}\end{array}$$ *PV for profits ($000) With equally likely states of nature, the alternative that has the largest expected monetary value is:

• A) A.
• B) B.
• C) C.
• D) D.
• E) E.

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Definitions:

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Products or services that can be used in place of each other, where an increase in the price of one leads to an increase in the demand for the other.