Which of the Following Statements Is TRUE of the Expected-Value

question 39

Multiple Choice

Which of the following statements is TRUE of the expected-value approach to selecting decision alternatives?

• A) It mostly applies to one-time decisions.
• B) It knows the state of nature in advance.
• C) It is best suited for repeated decisions.
• D) It is independent of probability estimates for events.

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Definitions:

Detrimental Reliance

A legal concept where a party suffers a loss because they relied on a promise or representation that was later breached or not fulfilled.

Creditor

A creditor is an entity (person or institution) that lends money or extends credit to another entity, expecting to be repaid in the future.

Sole Proprietor

An individual who owns and operates a business alone, bearing full responsibility for its debts and obligations.

Profitable

Describes a situation, project, or enterprise that results in financial gain or benefit.