Question 1 The coefficient of optimism is a measure of the decision maker's optimism.
Question 2 A payoff table is a means of orani!in a decision situation" includin the payoffs from different decisions i#en the #arious states of nature.
Question $ The ma%imin criterion results in the ma%imum of the minimum payoffs.
Question & A state of nature is an actual e#ent that may occur in the future.
Question ' The (((((((((((((( minimi!es the ma%imum reret. Question ) The ma%imin criterion results in the Question * A dominant decision is one that has better payoff than another decision under each state of nature. Question + The ma%imin approach to decision makin refers to Question , The ma%ima% criterion results in the ma%imum of the minimum payoffs.
Question 1- .eterminin the /orst payoff for each alternati#e and choosin the alternati#e /ith the best /orst is called Question 11 The Hur/ic! criterion is a compromise Question 12 The ma%ima% criterion results in the Question 1$ 0eret is the difference bet/een the payoff from the best decision and all other decision payoffs. Question 1& 0eret is the difference bet/een the payoff from the Question 1' The minima% reret criterion Question 1) The Hur/ic! criterion is a compromise bet/een the ma%ima% and ma%imin criteria. Question 1* The term opportunity loss is most closely related to Question 1+ The e1ual likelihood criterion multiplies the decision payoff for each state of nature by an e1ual /eiht. Question 1, The basic decision en#ironment cateories are Question 2- 2%pected opportunity loss is the e%pected #alue of the reret for each decision.