Nonprobabilistic Criteria Are Used When Either the Probabilities Associated with the Possible

question 32

True/False

Nonprobabilistic criteria are used when either the probabilities associated with the possible payoffs are unknown or the decision maker lacks confidence and/or information with which to assess probabilities for the various payoffs.

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Definitions:

Patent

A legal right granted by a government authority that gives an inventor exclusive rights to use, make, and sell an invention for a certain period of time.

Significant Influence

The capacity of an investor to participate in the financial and operating policy decisions of an investee but not control those policies.

Equity Method

An accounting technique used by firms to assess the profits earned from their investments in other companies by reporting these profits as income.