Moving to another question will save this response Question

> Moving to another question will save this response. Question 3 The decision maker can control states of nature in the pay-off table. True False Moving to another question will save this response

Solution

Answer: False

Explanation:

The decision maker cannot control the states of nature in the pay-off table. States of nature are the possible outcomes of the decision problem. There are three types of environment under which decision making occurs; certainty, uncertainty and risk according to the decision makers knowledge on the states of natures. State of nature is known to the decision maker under certainty while it is not known under uncertainty and the decision maker knows the probable states of natures under risk environment. But the decision maker has no control over the states of nature.

Hence the answer is false.