The states of nature are defined so that they are ___________. This means that at least one state of nature must occur at a given time for a chance event.
A)collectively exhaustive
B)mutually exclusive
C)certain events
D)optimistic outcomes

Question

Quizplus · Accepted Answer

The term "collectively exhaustive" means that all possible outcomes or states of nature are included and accounted for. This is necessary in probability analysis, as it ensures that the probability of all possible events adds up to 1. Therefore, the best choice is A.

The States of Nature Are Defined So That They Are