An Individual Makes Decisions According to Bayes' Decision Rule

question 1

Essay

An individual makes decisions according to Bayes' decision rule.For her current problem,she has constructed the following payoff table,and she now wishes to maximize the expected payoff.
The value of x currently is 50,but there is an opportunity to increase x by spending some money now.What is the maximum amount that should be spent to increase x to 75?

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Definitions:

Early 1700s

A historical period marked by significant developments in various fields such as science, politics, and the arts, roughly between 1700 and 1750.

Late 1800s

Refers to the final decades of the 19th century, a period marked by significant industrial, cultural, and social changes worldwide.

Behavioural Adaptation

Adjustments in behavior in response to environmental or situational changes, aiming at improving an individual’s ability to survive or succeed.

Functionalism

A theory in psychology that focuses on the purpose and functionality of consciousness and behavior in individuals.