Multiple Choice
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.
Correct Answer:
Verified
Correct Answer:
Verified
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