Exhibit 14.7
The following questions use the information below.
A decision maker is faced with two alternatives. The decision maker has determined that she is indifferent between the two alternatives when p = 0.45.
-A state of nature
A) is observed
B) is under control of a decision maker
C) is known with certainty
D) is estimated using a decision model of choice

Question

Exhibit 14.7
The following questions use the information below.
A decision maker is faced with two alternatives. The decision maker has determined that she is indifferent between the two alternatives when p = 0.45. 
-A state of nature
A) is observed 
B) is under control of a decision maker 
C) is known with certainty 
D) is estimated using a decision model of choice

Quizplus · Accepted Answer

A state of nature is a condition or situation that exists independently of the decision maker's control and is observed rather than controlled or estimated.

Exhibit 14.7 The Following Questions Use the Information Below