Exhibit 14.7 The Following Questions Use the Information Below

question 26

Multiple Choice

Exhibit 14.7
The following questions use the information below.
A decision maker is faced with two alternatives. The decision maker has determined that she is indifferent between the two alternatives when p = 0.45.
-The category of decision rules that contains the maximax decision rule is the

• A) optimistic category.
• B) non-probabilistic category.
• C) probabilistic category.
• D) optimality category.

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Definitions:

Royal Flush

The highest-ranking hand in poker, consisting of the Ace, King, Queen, Jack, and Ten of the same suit.

Full House

In poker, a hand consisting of three cards of one rank and two cards of another; alternatively, a situation in which a venue is filled to capacity.

Multiple-choice Questions

A test format that presents a question followed by several possible answers, only one of which is correct.

80% Chance

A probability statement indicating that an event is likely to occur 80 times out of 100, or 80% of the time.