Exhibit 14.12 The Following Questions Use the Information Below

question 18

Short Answer

Exhibit 14.12
The following questions use the information below.
A decision maker is faced with two alternatives. The decision maker has determined that she is indifferent between the two alternatives when p = 0.7.
-Refer to Exhibit 14.12. What is the expected value of Alternative 2 for this decision maker?

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Definitions:

Predisposition

A natural inclination or tendency to develop a particular condition or disease.

Environmental

Environmental pertains to anything related to the natural or built surroundings that affect organisms.

Preparedness

A predisposition to develop certain fears.

Stimulus Generalization

A phenomenon in which responses to one stimulus are also produced by similar stimuli.