Exhibit 14.1 The Following Questions Are Based on the Information Below

question 114

Multiple Choice

Exhibit 14.1
The following questions are based on the information below.
An investor is considering 4 investments, A, B, C and leaving his money in the bank. The payoff from each investment is a function of the economic climate over the next 2 years. The economy can expand or decline. The following payoff matrix has been developed for the decision problem.
-Probabilistic decision rules can be used if the states of nature in a decision problem can be assigned probabilities that represent their likelihood of occurrence. Which of the following is not true regarding the probabilities employed?

• A) The probabilities are always obtained from historical data.
• B) The probabilities must always be unbiased.
• C) The probabilities can be assigned subjectively.
• D) Subjective probabilities obtained can be accurate and unbiased.

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Definitions:

Sequence File

In computing and automation, a sequence file is a type of data file that specifies a series of operations or instructions to be executed in a specific order, often used for configuration or process automation.

Serially

The process of sending data one bit at a time, sequentially, over a communication channel.

Event-driven Sequencers

A programming construct that triggers actions in sequence based on specific events, commonly used in automation and control systems.