Future Events That Cannot Be Controlled by the Decision Maker

question 54

Multiple Choice

Future events that cannot be controlled by the decision maker are called

• A)indicators
• B)states of nature
• C)prior probabilities
• D)posterior probabilities

---

Definitions:

Financial Statement

A written record detailing the financial activities and condition of a business, including balance sheet, income statement, and cash flow statement.

Base Amount

A reference value or level in financial calculations, often serving as a benchmark for comparing financial performance or changes.

Horizontal Analysis

A technique for evaluating a series of financial statement data over a period of time, to determine the increase (decrease) that has taken place, expressed as either an amount or a percentage.

Vertical Analysis

A method used in financial statement analysis where each line item is listed as a percentage of a base figure, enabling comparison across different periods or companies.