A Payoff

question 20

Multiple Choice

A payoff

• A)is always measured in profit.
• B)is always measured in cost.
• C)exists for each pair of a decision alternative and a state of nature.
• D)exists for each state of nature.

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Definitions:

Vertical Axis

In graphing data, this is the y-axis, which is typically used to measure the dependent variable or show the scale of values in a chart.

Utility Function

A mathematical representation of how consumer preferences over a set of goods and services are ranked.

Horizontal Axis

In a graphical representation, the x-axis, which typically shows the independent variable or the quantity of goods.

Vertical Axis

in a graph or chart, the y-axis which typically represents the range of values or dependent variables.