After All Probabilities and Payoffs Are Placed on a Decision

question 36

True/False

After all probabilities and payoffs are placed on a decision tree,the decision maker calculates expected values at state-of-nature nodes and makes selections at decision nodes.

---

Definitions:

Homeostasis

The tendency of a biological system to maintain stable internal conditions despite external changes.

Drive Theory

A psychological theory that posits that behavior is motivated by the desire to meet basic physiological needs.

Incentive Theory

A theory in psychology that describes motivation as being driven by an organism’s desire to pursue rewards and avoid punishments.

Motivation

The process that initiates, guides, and maintains goal-oriented behaviors, involving biological, emotional, social, and cognitive forces that activate behavior.