Instruction 17-3 The Following Payoff Matrix Is Given in Dollars

question 90

Multiple Choice

Instruction 17-3
The following payoff matrix is given in dollars.
Suppose the probability of Event 1 is 0.5 and Event 2 is 0.5.
-Referring to Instruction 17-3,what is the action with the preferable return to risk ratio (RTRR) ?

• A)Action A.
• B)Action B.
• C)Either Action A or Action B.
• D)It cannot be determined.

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Definitions:

Variables

Elements, features, or factors that are likely to vary or change from one situation to another in an experiment or study.

Representative Sample

A subset of a population that accurately reflects the members of the entire population.

Population

The total number of individuals within a species or a designated area at a specific time.

Composition

The arrangement or structure of elements within a work of art, literature, or music that forms a unified whole.