Dan Hein Owns the Mineral and Drilling Rights to a 1,000

question 46

Multiple Choice

Dan Hein owns the mineral and drilling rights to a 1,000 hectare tract of land.If he drills a well and does not strike oil his net loss will be $50,000,but if he drills a well and strikes oil his net gain will be $100,000.If he does not drill,his loss is the cost of the mineral and drilling rights,which amount to $1000.The probability of the state of nature "oil in the tract" is unknown.If Dan is an optimist,he would choose the ___.

• A)maximin criterion
• B)maximax criterion
• C)Hurwicz criterion
• D)minimax regret strategy
• E)maximin regret strategy

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Definitions:

Threatening Messages

Communications intended to induce fear, anxiety, or a sense of danger in the recipient, often used to manipulate or control behavior.

Avoidant Jealousy

A defensive form of jealousy where individuals avoid dealing with feelings of jealousy or situations that could lead to jealousy.

Intrapsychic Phase

First phase in relationship termination, when an individual engages in an internal evaluation of the partner.

Dyadic Phase

A phase in relationship termination, during which the individual discusses termination with the partner.