A CEO is looking to determine how much profit the company can make if they purchase one of their competitors.Key to the decision is how much profit each competitor is likely to make given different levels of future demand in their market.In this situation, the levels of future demand in the market would be considered the ____________.

Question

Quizplus · Accepted Answer

States of nature represent different possible future scenarios that may affect the outcome of a decision. In this case, the level of future demand in the market is uncertain and can be considered a state of nature that may impact the potential profit of the company if they purchase their competitor.

A CEO Is Looking to Determine How Much Profit the Company