Based on the Following Payoff Table, Answer the Following The Maximum Likelihood Strategy Is:
A) A

question 51

Multiple Choice

Based on the following payoff table, answer the following:
$$\begin{array} { | l | r | r | r |} \hline { \text { Alternative } } & \text { High } & { \text { Medium } } & { \text { Low } } \\\hline \text { A } & 20 & 20 & 5 \\\hline \mathrm { B } & 25 & 30 & 11 \\\hline \mathrm { C } & 30 & 12 & 13 \\\hline \mathrm { D } & 10 & 12 & 12 \\\hline \mathrm { E } & 50 & 40 & - 28 \\\hline \text { Prior Probability } & 0.3 & 0.2 & 0.5 \\\hline\end{array}$$
The maximum likelihood strategy is:

• A) A.
• B) B.
• C) C.
• D) D.
• E) E.

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Definitions:

Physical Inventory

An actual count of all merchandise or stock on hand, conducted periodically to ensure the accuracy of inventory records.

Net Income

The total profit of a company after all revenues and gains are added together and all expenses and losses are subtracted.

FOB Shipping Point

A term indicating that the buyer assumes responsibility for the goods once the seller ships them.

Net Income

The total earnings of a company after subtracting all costs and expenses, including taxes and interest, from its total revenues.