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As with Other DIs, Profits or Return on Assets (ROA)

question 77

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As with other DIs, profits or return on assets (ROA) is the primary goal of credit union management.


Definitions:

Payoff Table

A table used in decision analysis to display the outcomes of different strategies under various states of nature.

Decision Tree Model

A tool for making decisions and predicting outcomes, where choices branch into subsequent potential consequences, forming a tree-like structure.

Conditional Probability

The probability of an event occurring given that another event has already occurred.

Hurdle Rate

The minimum rate of return on a project or investment required by a manager or investor.

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