When Considering Expected Returns,what Is True About the States of the World

question 9

Multiple Choice

When considering expected returns,what is true about the states of the world?

• A)They must have probabilities that sum to 100%.
• B)They represent all possible outcomes.
• C)They are sometimes simplified into outcomes such as boom,bust,and normal.
• D)Statements A through C are all true.

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Definitions:

Aggressive Behavior

Actions intended to harm or assert dominance over others, stemming from feelings of anger or frustration.

Reinforcement

A concept in behavioral psychology that involves the use of consequences to strengthen or increase the likelihood of a particular behavior, which can be positive (adding a desirable stimulus) or negative (removing an undesirable stimulus).

Expectancy

In psychology, it refers to the belief about the likelihood of achieving a desired outcome through specific actions.

Reinforcement Value

The subjective importance or appeal an outcome has for an individual, which can influence the likelihood of the person performing the behavior leading to that outcome.