Question
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 3 months agoRelated Solutions
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(Source: Blank and Tarquin)
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