Which of the Following Is a Decision-Making Approach Used When

question 1

Multiple Choice

Which of the following is a decision-making approach used when the probabilities of the states of nature are unknown,assumed as equal,and the different decision alternatives should be evaluated using the expected value of their payoffs?

• A)maximax criterion
• B)Laplace criterion
• C)maximin criterion
• D)Hurwicz criterion

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Definitions:

Internal Control

Internal control comprises the policies and procedures implemented by a company to safeguard its assets, ensure financial reporting accuracy, and comply with laws and regulations.

Principle Of Internal Control

A framework designed to provide reasonable assurance regarding the achievement of objectives in effectiveness and efficiency of operations, reliability of financial reporting, and compliance with applicable laws and regulations.

Fraud

Fraud is a deliberate act of deception intended for personal gain or to cause a loss to another party, often involving financial transactions.

Cash Equivalents

Investments of a short-term nature that are both easily converted into precise cash amounts and carry a minimal risk of fluctuating in value.