Exhibit 14.8 The Following Questions Use the Information Below

question 22

Multiple Choice

Exhibit 14.8
The following questions use the information below.
A company needs to buy a new insurance policy. They have three policies to choose from, A, B and C. The policies differ with respect to price, coverage and ease of billing. The company has developed the following AHP tables for price and summary. The other tables are not shown due to space limitations.
-Which decision rule optimistically assumes that nature will always be "on our side" regardless of what decision we make?

• A) maximax decision rule.
• B) maximin decision rule.
• C) minimax regret decision rule.
• D) minimin decision rule.

---

Definitions:

Operating Activities

Transactions and events related to the principal revenue-producing activities of an entity, reflected in its cash inflows and outflows.

Indirect Method

A way of reporting cash flows from operating activities in the cash flow statement by starting with net income and adjusting for changes in non-cash items and operating capital.

Quality of Earnings

An assessment of the degree to which a company's earnings are derived from sustainable, core business activities.

Productive Assets

Assets that are utilized in the production process to generate revenue, including machinery, buildings, and equipment.