A Tabular Presentation That Shows the Outcome for Each Decision

question 25

Multiple Choice

A tabular presentation that shows the outcome for each decision alternative under the various states of
Nature is called:

• A) a payback period matrix.
• B) a decision matrix.
• C) a decision tree.
• D) a payoff table.

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Definitions:

Stock Concept

An economic term describing quantities measurable at a point in time, such as wealth or capital.

Flow Concept

A term used in economics and finance to describe quantities measured over a period of time, such as income or expenses.

Wealth

An abundance of valuable financial assets or physical possessions which can be transformed into forms that can be used for transactions.