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:

Family Courts

Specialized courts that deal with cases involving family matters, such as divorce, child custody, adoption, and domestic violence.

Josephson Institute

An organization focused on ethics and character education; best known for its work in promoting ethical decision-making.

Ethical Value

Principals and standards governing behaviors, reflecting what is important in terms of right and wrong or good and bad.

Citizenship

The status of being a legally recognized subject or national of a state or commonwealth, often with associated rights and obligations.