When a Decision Maker Is Faced with Several Alternatives and an Uncertain

question 25

Multiple Choice

When a decision maker is faced with several alternatives and an uncertain set of future events, s/he uses __________ to develop an optimal strategy.

• A)utility theory
• B)predictive analytics
• C)data mining
• D)decision analysis

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Definitions:

Stock Markets

Platforms where shares of publicly-held companies are bought and sold, contributing to the allocation of capital in an economy.

Hong Kong

A Special Administrative Region of China known for its vibrant economic and business center, located on the south coast of China.

Futures Contract

A standardized legal agreement to buy or sell something at a predetermined price at a specified time in the future, often used for hedging or speculating.

Obligation

A legal or moral duty to complete certain actions or to make payments to others.