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

question 65

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 A3 when S2 occurs?

• A) 5
• B) 0
• C) 4
• D) 6

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Definitions:

Requirement

A stipulated condition or standard that must be met or complied with, often within a legal, regulatory, or contractual context.

Charging Order

A court’s order granting rights in a partner’s transferable interest to a personal creditor of the partner; a creditor with a charging order is entitled to the partner’s share of partnership distributions.

Transferable Partnership Interest

The aspect of a partner's share in a partnership that can be transferred or sold to another party, subject to the partnership agreement.

Judgment

A formal decision or conclusion by a judge or court at the end of a lawsuit.