Suppose Dean Has $500 and He Wants to Maximize His

question 11

Multiple Choice

Suppose Dean has $500 and he wants to maximize his expected benefit, ,where X is his resources in dollars.There are two companies he could invest in: Dog Gone Salon,which has a payoff of $1,000 with 50% probability and $0 with 50% probability and Pretty Kitty Grooming,which has a payoff of $2,000 with 50% probability and $0 with 50% probability.Dean's expected payoff from investing in Dog Gone Salon only is

• A) $1,000
• B) $500
• C) $0
• D) $1,500

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Definitions:

Emergency

A sudden, unexpected situation requiring immediate action to prevent or mitigate a dangerous or harmful outcome.

Autonomic Nervous System

Part of the peripheral nervous system that controls involuntary bodily functions like heartbeat, digestion, and breathing.

Physiological Arousal

The bodily responses to stimuli, such as increased heart rate or adrenaline release, indicating excitement or stress.

Emotional Arousal

Refers to the physiological and psychological state of being awoken or stimulated to have intense emotions or feelings.