Which of the following approaches to decision making requires knowledge of the probabilities of the states of nature?
A)minimax regret
B)maximin
C)expected value
D)conservative

Question

Quizplus · Accepted Answer

The expected value approach requires knowledge of the probabilities of the states of nature. This approach involves calculating the weighted average of the outcomes for each possible decision, where the weights are the probabilities of the corresponding states of nature. The other approaches listed (minimax regret, maximin, and conservative) do not require knowledge of probabilities but instead focus on minimizing potential losses or maximizing potential gains.

Which of the Following Approaches to Decision Making Requires Knowledge