A payoff
A)is always measured in profit.
B)is always measured in cost.
C)exists for each pair of a decision alternative and a state of nature.
D)exists for each state of nature.

Question

Quizplus · Accepted Answer

Payoff exists for each pair of a decision alternative and a state of nature. This means that the expected outcome of choosing a particular decision alternative depends on the possible outcomes associated with each state of nature. Therefore, the payoff is not always measured in profit or cost, and it is not necessarily associated with each state of nature, but with each pair of decision alternative and state of nature.

A Payoff