In a Decision-Making Scenario, If It Is Not Known Which

question 17

True/False

In a decision-making scenario, if it is not known which of the states of nature will occur but the probabilities of occurrence of the states are known the scenario is called decision-making under risk.

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Definitions:

Conditional Probability

The probability that an event will happen after another specific event has already taken place.

Probability Tree

A diagram that helps in visualizing and calculating the probabilities of complex, multistep events.

Certification Test

A formal examination that, upon successful completion, certifies an individual's knowledge or skills in a particular area or profession.

Passed Test

An indication that a particular sample or set of data meets or exceeds the criteria established for a specific statistical test.