Question

which one of the following statements is not correct when making decisions? question 2 options: every probability must be greater than or equal to 0. the sum of the state of nature probabilities must be 1. perfect information assumes that the state of nature that will actually occur is known. probabilities are used to compute expected values. all probabilities are assumed to be equal.

Answer 1

The statement that is not correct when making decisions is: all probabilities are assumed to be equal.

Step-by-step explanation:

The statement that is not correct when making decisions is: all probabilities are assumed to be equal.

When making decisions, probabilities are used to compute expected values. However, not all probabilities are assumed to be equal. In fact, probabilities can vary and represent the likelihood of different outcomes occurring. It is important to assign probabilities based on relevant information and data.