Business
Business, 11.04.2020 01:51, jackchelly

At a decision point in a decision tree, which of the following machine would you select when trying to maximize payoff? The anticipated payoff of selecting machine A is $45,000 with a probability of 90% and $35,000 with a probability of 10%; The expected payoff of selecting machine B is $80,000 with a probability of 55% and $20,000 with a probability of 45% ; the expected payoff of selecting machine C is $60,000 with a probability of 75% and $70,000 with a probability of 25%?

a. You would be indifferent between machines A and C.

b. Machine A

c. Machine B

d. Machine C

e. You would be indifferent between machines A and B.

answer
Answers: 2

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At a decision point in a decision tree, which of the following machine would you select when trying...

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