At a Decision Point in a Decision Tree,which Machine Would

question 45

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

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Definitions:

Nutritional Health

The condition of an individual's health as influenced by the intake and utilization of nutrients.

Eating Habits

The patterns, behaviors, and routines associated with food consumption in an individual or group.

Pantry

A small room or closet where food, dishes, and utensils are kept.

Coffeepot

A container or device for brewing coffee, typically with a spout and handle.