Question 2 A probability distribution ...(check all that apply) |:| is a way of dealing with uncertainty. |:| lists all possible outcomes and the corresponding probabilities of occurrence. |:| shows only the most likely outcome in an uncertain situation. Question 3 The variance of a probability distribution is used to measure risk because a higher variance is associated with (check all that apply) D D |:| a wider spread of values around the mean. |:| a more compact distribution. |:| a lower expected value. Question 4 Risk exists when (check all that apply) |:| all possible outcomes are known but probabilities can't be assigned to the outcomes |:| all possible outcomes are known and probabilities can be assigned to each. |:| all possible outcomes are known but only objective probabilities can be assigned to each. |:| future events can inuence the payoffs but the decision maker has some control over their probabilities. Question 5 Choosing the decision with the maximum possible payoff (check all that apply) |:| is the maximax rule. |:| ignores possible bad outcomes. |:| is a guide for decision making under uncertainty. |:| none of the other answers apply