# 93 Question 47 2.75 points Save Answer Exhibit 14.3 The following questions are based on the...

###### Question:

93

Question 47 2.75 points Save Answer Exhibit 14.3 The following questions are based on the information below. An investor is considering 4 investments, A, B, C and leaving his money in the bank. The payoff from each investment is a function of the economic climate over the next 2 years. The economy can expand or decline. The following payoff matrix has been developed for the decision problem. The investor has estimated the probability of a declining economy at 70% and an expanding economy at 30%. A B с D E F G | Η Payoff Matrix Regret Matrix 3 Economy Economy 4 Investment Decline Expand EMV Investment Decline EOL 5 A -10 90 A 6 B 20 50 B с 40 45 с 8 Bank 15 20 Bank 9 10 Probability 0.7 0.3 Probability 0.7 0.3 Refer to Exhibit 14.3. What is the expected monetary value of Investment A? o a. 34. o b. 15. O c. 20. o d. 30.
Question 98 Activity-on-Arc (AOA) networks do not allow multiple arcs with common start and finish nodes. If this must be represented, how is an AOA network modified? o a. Phantom (dummy) activity arcs are added. o b. The network is redrawn into an Activity-on-Node network. oc. Zero duration activity arcs are added. od. Connect the arcs to the node using an IFERROR() function.
The term "time zero" identifies o a. the start time for each activity. o b. days with not wasted effort. o c. the start time for the project. o d. midnight on each work day.

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