Instruction 17-3
the Following Payoff Table Shows Profits Associated with a Set

question 69

Multiple Choice

Instruction 17-3
The following payoff table shows profits associated with a set of three alternatives under two possible events.
$$\begin{array} { c c c c } \text { States } & A 1 & A 2 & A B \\\hline 1 & 12 & - 2 & 8 \\2 & 4 & 10 & 5\end{array}$$ where:
S1 is event 1
A1 is action alternative 1
S2 is event 2
A2 is action alternative 2
A3 is action alternative 3
-Referring to Instruction 17-3,if the probability of S1 is 0.2,what is the optimal decision using expected opportunity lost (EOL) ?

• A) A3
• B) A1
• C) A2
• D) It cannot be determined.

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Definitions:

Decompression Melting

The process by which melting occurs in the mantle due to a decrease in pressure as hot mantle rocks rise closer to the Earth's surface.

Oceanic Setting

Describes the environmental and geological characteristics of the ocean regions, including the deep sea, oceanic crust, and the ecosystems within.

Locations Shown

Specific places or areas that are indicated or displayed on a map or chart.

Hot Spots

Plumes of hot mantle rising to the Earth's surface, often fixed beneath a tectonic plate, which create volcanic islands and seamounts as the plate moves overhead.