Which of the following is a drawback of the Laplace criterion?
a. It ignores the payoffs associated with the “high demand” state of nature.
b. It ignores the payoffs associated with the “low demand” state of nature.
c. It is not a good method to use when the states of nature are not equally probable.
d. It ignores the maximum payoff that could be realized if the decision maker were a risk taker and the probabilities associated with the possible state of nature.
c. It is not a good method to use when the states of nature are not equally probable.
You might also like to view...
Which of the following is an example of an external obstacle to listening?
A. Ringing phones B. Self-talk C. Preoccupation D. Personal fatigue
An organization requires that employees in its accounting department take mandatory two-week long continuous vacations once a year. It allows no exceptions to this rule. Which control activity is the company using?
a. Segregation of duties b. Proper authorizations c. Physical safeguards d. Independent checks
Using the Indirect Method For the following question(s), indicate how each transaction described would be classified on a statement of cash flows if the operating activities section is prepared under the indirect method. When using the indirect method, where would the payment of cash dividends be shown on the statement of cash flows?
A) Operating activities B) Investing activities C) Financing activities D) Noncash investing and financing activity
A performance management system
a. Is concerned solely with the overall goals of the organization b. Is an organization-wide process that links the organization's goals to individual's goals c. Is something management should explore d. Is a technology solution for dealing with employee problems