A payoff table lists the monetary values for each possible combination of the
A)event (state of nature)and act (alternative).
B)mean and standard deviation.
C)mean and median.
D)None of these choices.

Question

Quizplus · Accepted Answer

A payoff table lists the monetary values for each possible combination of the event (state of nature) and act (alternative), which can help in decision making under uncertainty. It shows the payoffs for each possible combination of the events and the alternatives, allowing decision makers to select the best alternative based on the risk they are willing to take. Mean, standard deviation, and median are statistical measures that can be used to analyze data, but they are not relevant when it comes to evaluating the outcomes of different alternatives under uncertainty.

A Payoff Table Lists the Monetary Values for Each Possible