TABLE 17-1
the Following Payoff Table Shows Profits Associated with a Set

question 70

Multiple Choice

TABLE 17-1
The following payoff table shows profits associated with a set of 3 alternatives under 2 possible states of nature.
$\begin{array}{llcc} \text {States } &\text { A1 }&\text { A2 }&\text {A3 }\\\hline1&12&-2&8\\2&4&10&5\end{array}$


$\text {where:}$$\quad$$\quad$ $\text {S1 is state of nature 1 }$$\quad$$\text {A1 is action alternative 1}$
$\quad$$\quad$$\quad$$\quad$$\quad$$\text {S2 is state of nature 2}$$\quad$$\text { A2is action alternative 2}$
$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text {A3 is action alternative3 }$
-Referring to Table 17-1, what is the opportunity loss for A2 when S1 occurs?

• A) 5
• B) 14
• C) - 2
• D) 0

---

Definitions:

Writes Well

Demonstrates proficiency in producing clear, effective, and engaging written communication.

Compares And Contrasts

To compare and contrast means to identify similarities and differences between two or more subjects, often to evaluate or analyze them.

Black Bass

A popular freshwater gamefish in the Micropterus genus, known for its fighting spirit when caught.

Striped Bass

A popular game fish found in the Atlantic coast of North America, characterized by dark stripes running across its body horizontally.