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Optimal Beta Can Be Defined in Terms of Payoffs (Costs

Question 11

Multiple Choice

Optimal beta can be defined in terms of payoffs (costs and values) . Which of the following should increase optimal beta?


A) an increase in the value of a correct rejection
B) an increase in the value of a hit
C) an increase in the cost of a miss
D) a decrease in the cost of a false alarm

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