Which one of the following statements is not correct when making decisions?
A) The sum of the state of nature probabilities must be 1.
B) Every probability must be greater than or equal to 0.
C) All probabilities are assumed to be equal.
D) Probabilities are used to compute expected values.
E) Perfect information assumes that the state of nature that will actually occur is known.

Question

Quizplus · Accepted Answer

All probabilities are not assumed to be equal in decision making. They are assigned based on the available information and analysis of the situation.

Which One of the Following Statements Is Not Correct When