Define relevant.

• A. Relevant: the item can make a difference in the user's decisions
• B. Relevant: is always true
• C. Relevant: depends on tax rules
• D. Relevant: is not necessary for decision making

Answer: (A)

In decision analysis, something is relevant if it could change the choice you make because it can affect the expected outcomes or the utility of the options. That means an item is relevant when knowing it might shift which alternative looks best under the given probabilities and values.

That’s why the best statement says relevant means the item can make a difference in the user’s decisions. If information wouldn’t change which option you pick, it’s not relevant, and tax rules don’t define relevance—they might influence outcomes, but relevance is about whether the information could alter the decision itself.