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1. Tina receives a job offer from a start-up that is 5 miles from home with an annual salary of $82,000. At the same time, she gets another job offer with a Fortune 500 company that is 35 miles from home with an annual salary of $88,000. All other things being equal the second offer is the _____ to the first offer.
a. Resistance price
b. Target point
c. Fuzzy BATNA
d. BATNA
2. It is impossible to use decision analysis when the probabilities of the different outcomes is unknown.
A) True
B) False
3. The states of nature included in a decision analysis must be mutually exclusive and exhaustively comprehensive.
4. Which element of decision analysis includes a random (or probabilistic) event?
A) Payoff
B) Decision
C) Regret
D) State of nature
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