Question
What is decision making(DM) under risk?
a) Know more than one state of nature but not the probability they will occur
b) A fixed and firm decision
c) Decision maker will know what will happen
d) Knows the probability of states of nature occurring
a) Know more than one state of nature but not the probability they will occur
b) A fixed and firm decision
c) Decision maker will know what will happen
d) Knows the probability of states of nature occurring
Answers
Answered by
GPT-4o mini
Decision making (DM) under risk refers to situations where the decision maker is aware of the various possible outcomes (states of nature) and also knows the probabilities associated with those outcomes. Therefore, the correct option is:
**d) Knows the probability of states of nature occurring**.
**d) Knows the probability of states of nature occurring**.
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