1. True or False

If your answer is false, write down the reason.

(e) Payoff tables include only non-negative numbers.

(f) The maximax approach involves choosing the alternative that has the best worst payoff.

(g) Bayes decision rule says to choose the alternative with the largest expected payoff.

(h) States of nature are alternatives available to a decision maker.

(i) Using Bayes decision rule will always lead to larger payoffs.

(j) The maximum likelihood criterion ignores the payoffs for states of nature other than the most likely one.

(k) An event node in a decision tree indicates that a decision needs to be made at that point.