The Decision Aid Involving the Construction of a Key List

question 66

Multiple Choice

The decision aid involving the construction of a key list of inputs for a decision, importance weights for each input, and objective ratings of each input for each decision alternative is known as:

• A)an actuarial model
• B)an objective linear model
• C)a subjective linear model
• D)Both a and b are correct.
• E)None of the above are correct.

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Definitions:

Marginal Rate of Substitution

The rate at which a consumer is able to sacrifice a certain amount of one product for another while keeping their level of satisfaction unchanged.

Good X

A term used to represent an unspecified product or commodity in economic models and analyses.

Good Y

Refers to a hypothetical product or commodity used in economic models and theories to analyze market behaviors and consumer preferences.

Units

Refers to a single, distinct item or entity that is part of a larger quantity, often used in the context of measurement or count.