Table 1 Cold &Calculating; The cold, calculating father did exactly that when ex
ID: 3216198 • Letter: T
Question
Table 1 Cold &Calculating; The cold, calculating father did exactly that when examining the 27 year old failure to launch man child that had turned his walk in closet into a bedroom. As he saw it, there were five alternatives; each had its advantages and disadvantages, and under different circumstances, each had a different financial incentive. He laid it all out neatly in a table, but as not to arouse suspicion, he left the table's labels very generic, so the alternatives were simply labeled A through E while the different circumstances were simply numbered one through three. He flicked the gray ash off of his favorite purple smoking jacket and pondered the best course of action under each possible future. It was good to be devious, he decided. One 15 26 24 43 36 Three 20 48 12 15 15 18 34 34Explanation / Answer
Let us consider that the circumstances are equally possible, P(1)=P(2)=P(3)=1/3.
Therefore, expected payoff for each given alternatives, A,B,C,D are,
E(A) = 1/3 * (19+6+20) = 15
E(B) = 1/3 * (26+5+48) = 26.33
E(C) = 1/3 * (24+18+17) = 19.67
E(D) = 1/3 *(43+34+15) = 30.67
Thus the option D, has the highest expected value, which means the average return, so this is the best alternative amongst the given options.
One Two Three A 19 6 20 B 26 5 48 C 24 18 17 D 43 34 15 E 36 34 15Related Questions
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