Question 1

What is the range of the Hurwicz criterion coefficient of realism α?

Accepted Answer

A) 1 to 100 
B) 1 to 10 
C) 0 to 10 
D) 0 to 1 
E) −1 to 1 
A) 1 to 100 
B) 1 to 10 
C) 0 to 10 
D) 0 to 1 
E) −1 to 1

Question 2

All decisions that result in a favorable outcome are considered to be good decisions.

Accepted Answer

A) True 
 B)False

Question 3

List the six steps in decision making.

Accepted Answer

1.Clearly define the problem at hand.
2.

Question 4

A manager is deciding whether or not to build a small facility.Demand is uncertain and can be either at a high or low level.If the manager chooses a small facility and demand is low,the payoff is $300.If the manager chooses a small facility and demand is high,the payoff is $100.On the other hand,if the manager chooses a large facility and demand is low,the payoff is -$200,but if demand is high,the payoff is $800.
(a)What would be the best decision based on the maximax criterion?
(b)What would be the best decision based on the maximin criterion?
(c)What would be the best decision based on the minimax regret?

Accepted Answer

(a)large facility - highest ov

Question 5

Briefly describe EVSI.

Accepted Answer

EVSI = EMV (best decision with

Question 6

A plant manager considers the operational cost per hour of five machine alternatives.The cost per hour is sensitive to three potential weather conditions: cold,mild,and warm.The following table represents the operations cost per hour for each alternative-state of nature combination:   Using the equally likely criterion,which alternative is best?

Accepted Answer

A) Machine 1 
B) Machine 2 
C) Machine 3 
D) Machine 4 
E) Machine 5 
A) Machine 1 
B) Machine 2 
C) Machine 3 
D) Machine 4 
E) Machine 5

Question 7

The following is a payoff table giving profits for various situations.   What decision would a pessimist make?

Accepted Answer

A) Alternative 1 
B) Alternative 2 
C) Alternative 3 
D) Do Nothing 
E) State of Nature A 
A) Alternative 1 
B) Alternative 2 
C) Alternative 3 
D) Do Nothing 
E) State of Nature A

Question 8

Consider the following payoff table.   How much should be paid for a perfect forecast of the state of nature?

Accepted Answer

A) 170 
B) 30 
C) 10 
D) 100 
E) 40 
A) 170 
B) 30 
C) 10 
D) 100 
E) 40

What is the range of the Hurwicz criterion coefficient of realism α?

All decisions that result in a favorable outcome are considered to be good decisions.

List the six steps in decision making.

Briefly describe EVSI.

The following is a payoff table giving profits for various situations. What decision would a pessimist make?

Consider the following payoff table. How much should be paid for a perfect forecast of the state of nature?

Introduction to Quantitative Analysis

Probability Concepts and Applications

Regression Models

Forecasting

Inventory Control Models

Linear Programming Models: Graphical and Computer Methods

Linear Programming Applications

Transportation,assignment,and Network Models

Integer Programming,goal Programming,and Nonlinear Programming

Project Management

Waiting Lines and Queuing Theory Models

Simulation Modeling

Markov Analysis

Statistical Quality Control

Analytic Hierarchy Process

Dynamic Programming

Decision Theory and the Normal Distribution

Game Theory

Mathematical Tools: Determinants and Matrices

Calculus-Based Optimization

Linear Programming: The Simplex Method

Transportation, Assignment, and Network Algorithms

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Exam 3: Decision Analysis

What is the range of the Hurwicz criterion coefficient of realism α?

All decisions that result in a favorable outcome are considered to be good decisions.

List the six steps in decision making.

Briefly describe EVSI.

The following is a payoff table giving profits for various situations. What decision would a pessimist make?

Consider the following payoff table. How much should be paid for a perfect forecast of the state of nature?

Introduction to Quantitative Analysis

Probability Concepts and Applications

Regression Models

Forecasting

Inventory Control Models

Linear Programming Models: Graphical and Computer Methods

Linear Programming Applications

Transportation,assignment,and Network Models

Integer Programming,goal Programming,and Nonlinear Programming

Project Management

Waiting Lines and Queuing Theory Models

Simulation Modeling

Markov Analysis

Statistical Quality Control

Analytic Hierarchy Process

Dynamic Programming

Decision Theory and the Normal Distribution

Game Theory

Mathematical Tools: Determinants and Matrices

Calculus-Based Optimization

Linear Programming: The Simplex Method

Transportation, Assignment, and Network Algorithms

Filters