Making a Good Decision

question 42

Multiple Choice

Making a good decision

• A)requires probabilities for all states of nature.
• B)requires a clear understanding of decision alternatives,states of nature,and payoffs.
• C)implies that a desirable outcome will occur.
• D)All of these are correct.

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Definitions:

Proportion

A subdivision, quota, or ratio analyzed in respect to its full size.

Unknown Quantity

An undetermined or unspecified value in mathematics that needs to be solved or identified.

Fraction Form

Fraction form is a way to represent numbers by showing how many parts of a whole are there, typically written with one number over another, separated by a line.

Proportion

A relationship between two quantities denoting their ratio.