When the Lines for Two Alternatives Cross on a Strategy

question 22

Multiple Choice

When the lines for two alternatives cross on a strategy region chart,this shows:

• A) A change in which decision alternative is optimal
• B) The point at which a decision was made
• C) The point where the rate of change in expected value is zero
• D) Resolution of the uncertainty about the input variable
• E) None of these options
• An investor has $25,000 in assets and faces a difficult choice between two investments.If he invests in the first opportunity there is a 70% chance that he will increase his assets by $75,000 and a 30% chance that he will increase his assets by $20,000.If he invests in the second option there is a 40% chance that he will increase his assets by $150,000 and a 60% chance that he will increase his assets by $5,000.

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Definitions:

Ampule

A small sealed vial which is used to contain and preserve a sample, typically a liquid or solid.

Container

An object that can hold or transport something, ranging from a simple box or jar to a large shipping container.

Meniscus

The curve in the air-to-liquid surface of a liquid specimen in a container.

Medicine

The science and practice of the diagnosis, treatment, and prevention of disease, as well as the promotion of health.