A decision criterion which weights the payoff for each decision by its probability of occurrence is known as the
A)Payoff criterion
B)expected value criterion
C)probability
D)expected value of perfect information

Question

Quizplus · Accepted Answer

The expected value criterion considers both the payoff and the probability of each decision, making it a more comprehensive approach to decision-making than the payoff criterion. The probability and expected value of perfect information are measures used to assess the quality of the decision-making process, rather than decision criteria themselves.

A Decision Criterion Which Weights the Payoff for Each Decision