Solved

The Following Payoff Matrix Shows the Profit Outcomes for Three \quad

Question 23

Multiple Choice

The following payoff matrix shows the profit outcomes for three projects,A,B,and C,for each of two possible product prices.There is a 60% probability the price will be $10 and a 40% probability the price will be $20. \quad \quad \quad \quad \quad \quad \quad  Profit \text { Profit }
 Project  A  B  CP=$10204026P=$208060140\begin{array}{c}\begin{array}{c}\text { Project } \\\text { A } \\\text { B }\\\text { C}\end{array}\begin{array}{|c|}\hline P=\$ 10 \\\hline 20 \\\hline 40 \\\hline-26 \\\hline\end{array}\begin{array}{c|}\hline P=\$ 20 \\\hline 80 \\\hline 60 \\\hline 140 \\\hline\end{array}\end{array}
Using the maximum expected value rule a decision maker would choose


A) A.
B) B.
C) C.
D) impossible to tell from the information

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions