In decision theory, probabilities are associated with a.payoffs. b. alternatives. c. states of nature. d. none of theabove
Expert Answer
The correct option is ( C) states ofnature.
In the decision theory when various alternative are listed thennext step comes where there is a task to recognize the possibleoutcomes and the probabilities of occurring those events and thoseoutcomes on which the person has less or no control over. It isreferred as state of nature hence state of nature will be correctoption.