Possibilities.
State of nature: one possible way in which events relevant to a risky decision can unfold.
When analyzing a risky decision, economist begin by describing every possible state of nature.
Probability Probability: measure of the likelihood that a state of nature will occur.
Objective probability: measure of the likelihood that a state of nature will occur based on the frequency with which it has occurred in the past under comparable conditions.
subjective probability: measure of the likelihood that an event will occur based on subjective judgment