Exhibit 14.7 The Following Questions Use the Information Below

question 26

Multiple Choice

Exhibit 14.7
The following questions use the information below.
A decision maker is faced with two alternatives. The decision maker has determined that she is indifferent between the two alternatives when p = 0.45.
-The category of decision rules that contains the maximax decision rule is the

• A) optimistic category.
• B) non-probabilistic category.
• C) probabilistic category.
• D) optimality category.

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Definitions:

Opportunity Cost

The value of the next best alternative that one gives up when making a decision.

Computers

Electronic devices that process, store, and communicate information through logical operations.

Cellular Telephones

Personal communication devices that use a network of radio frequencies to connect calls between mobile users.

Japan

An island country located in East Asia, known for its rich culture, technological advancements, and economic power.