In computing an expected value (EV), the weights are
A)decision alternative probabilities
B)in pounds or some unit of weight
C)in dollars or some units of currency
D)the state-of-nature probabilities

Question

Quizplus · Accepted Answer

The weights in computing an expected value are the state-of-nature probabilities. These probabilities represent the likelihood of different possible outcomes or scenarios occurring. Therefore, D is the correct choice.

In Computing an Expected Value (EV), the Weights Are