If It Is Assumed That Each Possible State of Nature

question 36

Multiple Choice

If it is assumed that each possible state of nature has an equal likelihood of occurrence, the expected value criterion will yield the same result as:

• A)maximin.
• B)minimax
• C)maximax
• D)the principle of insufficient reason.

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Definitions:

Irrevocable

Something that cannot be changed, reversed, or taken back once it has been established or done.

Grantor

The individual or entity that establishes a trust, transfers property, or conveys rights to another person or entity.

Spendthrift Trust

A trust designed to provide financial support to a beneficiary while protecting the trust assets from the beneficiary's creditors or from being spent recklessly by the beneficiary.

Creditors

Individuals or entities to whom money is owed by a debtor or the company.