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In: Math

Below you have a payoff table for a set of decisions that are under consideration.                             &nb

Below you have a payoff table for a set of decisions that are under consideration.

                                               States of Nature

Alternative                  Low          High

Option A                     10              15

Option B                     12              13

Option C                     13               10

Choose the correspondence equation line for option A, B, and C:

Y= -5x+15x

Y=3x+10

Y=-X+13

Solutions

Expert Solution

Ans:

given data :

States of Nature

Alternative                  Low          High

Option A                     10              15

Option B                     12              13

Option C                     13               10

here wehave to choose the coresponding equation for optionsA and option B and option C :

equation for option A:

  • A= high value+(low value- high value)*x
  • A = 15+(10-15)*x
  • A =15+(-5)*x
  • A =15+(5x)
  • A=15-5x

Equation for option A=15-5x

euqtion for otion B:

  • B= 13+(12-13)*x
  • B = 13+(-1)x
  • B=13-X

euation for option B is 13-x

Equation for option C:

  • C= 10+(13-10)*x
  • C =10+(3)*x
  • C =10+3x

equation for otion C=10=3x.

here corresponding equation for option a and option b and option c is

  • Thusly choice B is right (However the documentation does not appear to be great shows up on both side of + sign)

milcah answered 1 month ago
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