Given the Payoff Table Below, Determine the Expected Value and Size

question 2

Multiple Choice

Given the payoff table below, determine the expected value and size of warehouse that would be built, given a probability of 0.7 and 0.3 to the high and low demands, respectively.

• A) $8 million, small warehouse
• B) $5 million, medium warehouse
• C) $18.7 million, large warehouse
• D) $12 million, medium warehouse
• E) $22 million, large warehouse

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Definitions:

Neuroticism

A personality trait associated with negative emotions like anxiety, depression, and irritation, often reflected in emotional instability.

Reproductive Advantages

Benefits or favorable traits that increase an organism's chances of reproducing and passing genes to the next generation.

Human Aggression

Refers to behaviors that can result in both physical and psychological harm to oneself, others, or objects in the environment.

Evolutionary Psychology

An approach in psychology that examines psychological structures and traits as arising from evolutionary processes, focusing on how natural selection has shaped the mind and behavior.