Exhibit 21-3 Below You Are Given a Payoff Table Involving Two States

question 3

Multiple Choice

Exhibit 21-3
Below you are given a payoff table involving two states of nature and three decision alternatives. The probability of the occurrence of state of nature S₁ is 0.4.
-Refer to Exhibit 21-3. The expected monetary value of the best alternative equals

• A)13,000
• B)14,000
• C)15,000
• D)16,000

---

Definitions:

Early Sex

Engaging in sexual activities at a younger age than the societal norm or average.

High Self-esteem

The positive evaluation of oneself, marked by feelings of self-worth and a belief in one's abilities and value.

Goal-setting

The process of identifying and setting achievable objectives or benchmarks to guide behavior and track success.

Sociometer Theory

A psychological theory suggesting that self-esteem is an internal measure of one's social acceptability and how well one adheres to social norms.