The standard representation of individual decisions

4 important questions on The standard representation of individual decisions

When is a decision problem open?

When new alternatives can be invented or discovered by the decision-maker

What are state of natures?

the common habit of summarizing the various unknown extraneous factors into a number of cases

How are the possible outcomes of a decision defined?

as the combined effect of a chosen alternative and the state of nature that obtains
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What happens in a decision matrix?

the alternatives open to the decision-maker are tabulated against the possible states of nature.

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