Question: Is the following statement correct, incorrect or imprecise? . Give a correct version of the statement if possible. a) A backwards-induction solution to a finite

Is the following statement correct, incorrect or imprecise? . Give a correct version of the statement if possible.

a) A backwards-induction solution to a finite game of perfect information where no two terminal nodes prescribe the same payoff is:

1. Sequentially rational,

2. The subgame-perfect Nash equilibrium in the game,

3. The unique Nash equilibrium in the game."

b)Game in normal form consists the following items:

1. A set of players.

2. A set of actions for each player.

3. A game tree with a precedence relaion between nodes.

4. A set of payoff func!ons for each player that gives the payoff value for any combina!on of the players' chosen actions."

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