Use the following to answer the questions below.
In choosing between three new jobs, Joe MBA considers the potential payoffs over the next three years. The following table contains the payoffs, given the speed of promotion in each of the organizations. The probability of fast promotion is 0.6, and the probability of slow promotion is 0.4.

-Use the information in Table A.3 and the Laplace decision rule. The weighted payoff is:
A) less than $200,000 if the high-flying consultant job is selected.
B) more than $280,000 if the research assistant job is selected.
C) more than $280,000 if the utility analyst job is selected.
D) highest for the research assistant position.

Question

Use the following to answer the questions below.
In choosing between three new jobs, Joe MBA considers the potential payoffs over the next three years. The following table contains the payoffs, given the speed of promotion in each of the organizations. The probability of fast promotion is 0.6, and the probability of slow promotion is 0.4.
 
-Use the information in Table A.3 and the Laplace decision rule. The weighted payoff is:
A) less than $200,000 if the high-flying consultant job is selected. 
B) more than $280,000 if the research assistant job is selected. 
C) more than $280,000 if the utility analyst job is selected. 
D) highest for the research assistant position.

Quizplus · Accepted Answer

The Laplace decision rule involves calculating the average payoff for each option and selecting the one with the highest average. The utility analyst job has a weighted payoff of more than $280,000, making it the correct choice.

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