A Business Owner Is Trying to Decide Whether to Buy

question 110

Multiple Choice

A business owner is trying to decide whether to buy, rent, or lease office space and has constructed the following payoff table based on whether business is brisk or slow. $$\begin{array} { l | c r } \text { Alternative } & \text { Brisk } & \text { Slow } \\\hline \text { Buy } & 90 & - 10 \\\text { Rent } & 70 & 40 \\\text { Lease } & 60 & 55\end{array}$$ The equal likelihood criterion strategy is

• A) Buy.
• B) Rent.
• C) Lease.
• D) Brisk.

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Definitions:

Obsessive-compulsive Disorders

A type of anxiety disorder marked by uncontrollable, reoccurring thoughts (obsessions) and behaviors (compulsions) that the person feels the urge to repeat over and over.

Cognitive-behaviorist

A practitioner of cognitive-behavioral therapy, a form of psychotherapy that focuses on modifying dysfunctional emotions, behaviors, and thoughts by interrogating and uprooting negative or irrational beliefs.

Dog Phobia

An intense, irrational fear of dogs, leading to significant anxiety and avoidance behaviors.

Modeling

In psychology, a therapeutic technique that involves learning through the observation of others’ behaviors and the outcomes of those behaviors.