Heading: Analyzing Risky Decisions

question 7

Multiple Choice

Heading: Analyzing Risky Decisions
**Reference: Use the decision tree along with the given probabilities to answer the next six questions
Probability Event A = 30% Probability Event B = 70%
Probability Event 1 = 58% Probability Event 2 = 42%
Probability of Event A given that Event 1 occurs = 16%
Probability of Event B given that Event 1 occurs = 84%
Probability of Event A given that Event 2 occurs = 50%
Probability of Event B given that Event 2 occurs = 50%

-*At node A, which decision has the higher expected value?

• A)Decision A
• B)Decision B
• C)Either decision; they both have the same expected value.
• D)Neither decision; more information is needed.

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Definitions:

Minority Groups

Communities or populations that differ from the majority population in terms of racial, ethnic, religious, or linguistic characteristics, often facing social, economic, or political disadvantages.

Homosexuals

Individuals who are romantically or sexually attracted to people of their own sex.

Democratic Elitism

A political theory that suggests a small, highly informed and capable group of elites governs in the interest of the larger population.

Elites

A small group of people within a society who hold a disproportionate amount of wealth, privilege, political power, or skill.