Exhibit 14.1
The following questions are based on the information below.
An investor is considering 4 investments, A, B, C and leaving his money in the bank. The payoff from each investment is a function of the economic climate over the next 2 years. The economy can expand or decline. The following payoff matrix has been developed for the decision problem.
-Decision analysis supports all but one of the following goals. Which goal is not supported?
A) Help make good decisions.
B) Ensure selection of good outcomes.
C) Analyze decision problems logically.
D) Incorporate problem uncertainty.

Question

Exhibit 14.1
The following questions are based on the information below.
An investor is considering 4 investments, A, B, C and leaving his money in the bank. The payoff from each investment is a function of the economic climate over the next 2 years. The economy can expand or decline. The following payoff matrix has been developed for the decision problem. 
-Decision analysis supports all but one of the following goals. Which goal is not supported?
A) Help make good decisions. 
B) Ensure selection of good outcomes. 
C) Analyze decision problems logically. 
D) Incorporate problem uncertainty.

Quizplus · Accepted Answer

Decision analysis helps in making good decisions by logically analyzing decision problems and incorporating uncertainty. However, it cannot ensure the selection of good outcomes, as outcomes are often influenced by factors beyond the decision-making process itself.

Exhibit 14.1 The Following Questions Are Based on the Information Below