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Logical Decisions - Classweb

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chance having 160 hp (the most preferred level)<br />

and 30 mpg (also the most preferred level) and a 50<br />

percent chance of having 80 hp and 16 mpg (the<br />

least preferred levels). In other words, it's an all or<br />

nothing gamble, either the most preferred level on<br />

both measures or the least preferred levels, both<br />

with an equal chance of occurring. Call this<br />

alternative A. Now suppose a second truck is the<br />

same as the first but has a 50 percent chance of<br />

having 160 hp and 16 mpg and a 50 percent chance<br />

of having 80 hp and 30 mpg. It's still uncertain.<br />

You're guaranteed to get either good horsepower<br />

or good gas mileage, but not both. Call this<br />

alternative B. I know these are complicated so I've<br />

drawn them in Figure 9-16. Which of A or B<br />

would you prefer?<br />

Figure 9-16. Example of assessment question for interactions<br />

Section 9 -- In Depth 9-61

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