Two Companies Are About to Make a Decision Regarding an Investment

question 53

Multiple Choice

Two companies are about to make a decision regarding an investment in a new promotional campaign. Company A will either advertise in all media or advertise in newspapers only. Company B will either run a sweepstake or run a big sale. The payoff matrix is shown below. $\begin{array} { l l c c } \hline && { \text { Company B } } \\&& \mathrm { B } _ { 1 } : \text { Run a } & \mathrm { B } _ { 2 } : \text { Run a } \\&& \text { sweepstakes } & \text { big sale } \\\hline & \begin{array} { l } \text { A1: Advertise } \\\text { in all media }\end{array} & 4 &-1 \\\text { Company A } & \begin{array} { l } \text { A2: Advertise } \\\text { in newspapers only }\end{array} & - 2 & 1 \\\hline\end{array}$
Determine the proportion of time that Company A should employ each strategy.

• A) A₁: 12.5%, A₂: 87.5%
• B) A₁: 25%, A₂: 75%
• C) A₁: 37.5%, A₂: 62.5%
• D) A₁: 50%, A₂: 50%
• E) A₁: 62.5%, A₂: 37.5%

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Definitions:

Voltage-Gated

Referring to ion channels that open or close in response to changes in the electrical potential across a cell membrane.

Sodium Channels

Proteins located in cell membranes that facilitate the passage of sodium ions into and out of the cell, essential for processes such as nerve impulse transmission.

Action Potential

A temporary reversal of an electric membrane potential, which propagates along the membrane of a nerve cell or muscle cell.

Cerebrospinal Fluid

Clear fluid that surrounds the brain and spinal cord and fills ventricles within the brain.