A tabular presentation that shows the outcome for each decision alternative under the various states of the events is called ________
A) a payoff table
B) a decision tree
C) a decision matrix
D) a payback period matrix

Question

Quizplus · Accepted Answer

A payoff table is designed to show the possible outcome of each decision alternatives under different states of nature. It summarizes the profit/loss of each decision alternative under different probabilities. By looking at the table, we can determine the best decision alternative based on the highest expected payoff.

A Tabular Presentation That Shows the Outcome for Each Decision