In decision theory, we call the payoffs resulting from each possible combination of alternatives and outcomes
A)marginal values.
B)conditional values.
C)conditional probabilities.
D)Bayesian values.

Question

Quizplus · Accepted Answer

The payoffs resulting from each possible combination of alternatives and outcomes are called conditional values. This is because the value of the outcome is conditional on the alternative that is chosen. Therefore, in decision theory, we use conditional values to determine the best choice based on the expected payoff. The other options (A, C, D) are not accurate definitions of what we are looking for in this scenario.

In Decision Theory, We Call the Payoffs Resulting from Each