Simplistic Inc

question 4

Multiple Choice

Simplistic Inc.has a project that costs $600,000.It has a 70% chance of a $1,000,000 payoff and a 30% chance of a $100,000 payoff.What is the expected payoff and the expected profit or loss from the new project?

• A)The expected payoff is $730,000,and the expected gain is $130,000.
• B)The expected payoff is $700,000,and the expected loss is $100,000.
• C)The expected payoff is $600,000,and the expected gain is $0.
• D)The expected payoff is $500,000,and the expected loss is $100,000.

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Definitions:

Performance Feedback

Evaluative information provided regarding the efficacy or quality of an individual's work output or performance.

Family Experience

The unique set of relationships, dynamics, traditions, and interactions one has within their family unit, influencing identity and behavior.

Selective Information Processing

The cognitive process by which an individual focuses on specific information while ignoring other pieces of information, often based on biases or pre-existing beliefs.

Manipulating Appraisals

Involves altering the way a situation is perceived in order to manage emotional responses to that situation.