Possible states of nature found in capacity EMV problems are future demands or market favorability.

Question

Quizplus · Accepted Answer

In capacity EMV problems, the states of nature refer to different possible future outcomes that may affect the capacity needed by a firm. Examples of states of nature include future demand levels or changes in the market favorability for a particular product or service. Therefore, the statement is true.

Possible States of Nature Found in Capacity EMV Problems Are