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.
-The ____ correspond to future events that are not under the control of the decision maker.
A) payoffs
B) states of nature
C) criteria
D) alternatives

Question

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.  
-The ____ correspond to future events that are not under the control of the decision maker.
A) payoffs 
B) states of nature 
C) criteria 
D) alternatives

Quizplus · Accepted Answer

States of nature refer to future events or conditions that are beyond the control of the decision maker, such as weather conditions, economic changes, or actions by competitors.

Exhibit 14.8 The Following Questions Use the Information Below