You Are Trying to Decide in Which of the Three

question 52

Multiple Choice

You are trying to decide in which of the three companies you should invest. Refer to the following Payoff Table. If the probability of the Market rising in the next year is 0.50, which of the following statements are correct?
i. The Opportunity Loss for Company A is $1,460.
ii. The Opportunity Loss for Company B is $1,600.
iii. The Opportunity Loss for Company C is $1,475.

• A) (i), (ii), and (iii) are all correct statements.
• B) (i) is a correct statement but not (ii) or (iii).
• C) (i) and (iii) are correct statements but not (ii).
• D) (i) and (ii) are correct statements but not (iii).
• E) (i), (ii), and (iii) are all false statements.

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Definitions:

Back Weld

A welding technique where a weld is applied on the opposite side of a previously welded joint to ensure strength and integrity.

Backing Weld

A type of weld applied to the root of a joint for ensuring complete root penetration and to support molten weld metal.

Double-Groove Joint

A type of joint where two parallel grooves are made on each piece of material to be joined, typically used in welding for increased strength.