Suppose that each of two prisoners has the independent choice of confessing to a crime or not confessing to a crime they were both alleged to commit. if neither confesses, they spend 2 years in jail; if both confess, they spend 3 years in jail. if one confesses and the other does not, the confessor gets off with 1 year in jail while the other gets 6 years in jail. according to game theory, the likely strategy of the prisoners is

a. one will confess and the other will not.
b. neither will confess.
c. both may or may not confess.
d. both will confess.

(D)

Explanation:

The point of game theory is to predict other people's behavior so that with that foresight you can choose the "best" behavior / action for yourself. It focuses on "strategic situations," which are situations in which the outcome depends not only on your choice alone but your choice and other people's choices.

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.