You Have a Decision to Invest $10,000 in Any of Four

question 19

Essay

You have a decision to invest $10,000 in any of four different companies. You estimate the probabilities that the economy will be favorable or unfavorable, and you estimate the percent returns over the next year. Based on expected value, what company do you choose?

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Definitions:

Variable-Interval Reinforcement

A schedule of reinforcement where responses are rewarded after unpredictable intervals of time, enhancing response rates and resistance to extinction.

Fixed-Interval Reinforcement

A schedule in operant conditioning where rewards are provided after a specified time period has elapsed, regardless of the behavior exhibited.

Variable-Interval Reinforcement

A schedule of reinforcement where a response is rewarded after an unpredictable amount of time has passed, which increases the consistency of the response.

Variable-Ratio Reinforcement

A reinforcement strategy in operant conditioning where a response is rewarded after an unpredictable number of responses, leading to high and steady response rates.