States of nature
A)are the possible outcomes for a chance event.
B)can be selected by the decision maker.
C)cannot be enumerated by the decision maker.
D)None of these are correct.

Question

Quizplus · Accepted Answer

States of nature are the possible outcomes for a chance event. They represent the different scenarios that may occur in the future and are usually associated with probabilities or likelihoods of occurrence. The decision maker has no control over the states of nature, but must choose a course of action that takes into account the likelihood and consequences of each possible state of nature. Therefore, option A is the best choice.

States of Nature