A corn farmer has categorized the weather into three possible levels.The weather conditions will affect the timing of the harvest and the associated payoff.In this situation,the weather conditions are called the ____________________________.
A)Alternatives
B)States of nature
C)Payoffs
D)Perfect information

Question

Quizplus · Accepted Answer

The possible weather conditions are the states of nature as they are uncertain and lead to different outcomes in terms of harvest timing and payoff. Alternatives refer to the different decision options available to the corn farmer, while payoffs refer to the potential rewards or losses associated with each alternative. Perfect information would imply knowing the outcome of the weather conditions in advance, which is not the case in this scenario.

A Corn Farmer Has Categorized the Weather into Three Possible