Question 1

The approach used to determine the optimal decision strategy involves​

Accepted Answer

A)  ​a forward (left to right) pass through the decision tree. 
B)  ​a backward (right to left) pass through the decision tree. 
C)  ​choosing the outcome of a chance event with the greatest probability. 
D)  ​choosing the outcome of a chance event with the greatest payoff. 
A)  ​a forward (left to right) pass through the decision tree. 
B)  ​a backward (right to left) pass through the decision tree. 
C)  ​choosing the outcome of a chance event with the greatest probability. 
D)  ​choosing the outcome of a chance event with the greatest payoff. B

Question 2

The expected opportunity loss of the best decision alternative is the

Accepted Answer

A)  expected monetary value. 
B)  payoff. 
C)  expected value of perfect information. 
D)  None of these alternatives is correct. 
A)  expected monetary value. 
B)  payoff. 
C)  expected value of perfect information. 
D)  None of these alternatives is correct. C

Question 3

Below you are given an income payoff table involving three decision alternatives and two states of nature.   ​ The probability of the occurrence of s1 = .3. The expected value of alternative A is

Accepted Answer

A)  10.9. 
B)  13.2. 
C)  12.9. 
D)  8.1. 
A)  10.9. 
B)  13.2. 
C)  12.9. 
D)  8.1. D

Question 4

A tabular representation of the payoffs for a decision problem is a

Accepted Answer

A)  decision tree. 
B)  payoff table. 
C)  sequential node. 
D)  problem table. 
A)  decision tree. 
B)  payoff table. 
C)  sequential node. 
D)  problem table.

Question 5

Experts in problem solving agree that the first step in solving a complex decision problem is to​

Accepted Answer

A)  ​decompose it into a series of smaller subproblems. 
B)  ​acquire the best software available for solving it. 
C)  ​assign several teams to work on it simultaneously. 
D)  ​recognize your staff's limitations and hire expert consultants. 
A)  ​decompose it into a series of smaller subproblems. 
B)  ​acquire the best software available for solving it. 
C)  ​assign several teams to work on it simultaneously. 
D)  ​recognize your staff's limitations and hire expert consultants.

Question 6

A line or arc connecting the nodes of a decision tree is called a(n)

Accepted Answer

A)  junction. 
B)  intersection. 
C)  branch. 
D)  node. 
A)  junction. 
B)  intersection. 
C)  branch. 
D)  node.

Question 7

The _____ leaving the decision node correspond to the decision alternatives.

Accepted Answer

A)  nodes 
B)  decision trees 
C)  branches 
D)  payoff tables 
A)  nodes 
B)  decision trees 
C)  branches 
D)  payoff tables

Question 8

When working backward through a decision tree, the analyst should​

Accepted Answer

A)  ​compute the expected value at each chance node. 
B)  ​select the best chance branch at each chance node. 
C)  ​select the best chance branch at each decision node. 
D)  ​compute the expected value at each decision node. 
A)  ​compute the expected value at each chance node. 
B)  ​select the best chance branch at each chance node. 
C)  ​select the best chance branch at each decision node. 
D)  ​compute the expected value at each decision node.

Question 9

Below you are given a profit payoff table involving two decision alternatives and three states of nature.   ​ The probability that s1 will occur is .2; the probability that s2 will occur is .6.
The expected value of the best alternative equals

Accepted Answer

A)  29. 
B)  105. 
C)  12.0. 
D)  41.0. 
A)  29. 
B)  105. 
C)  12.0. 
D)  41.0.

Question 10

Below you are given a profit payoff table involving three decision alternatives and two states of nature.   ​ The probability of occurrence of s1 = .2. The expected value of alternative A is

Accepted Answer

A)  7.6. 
B)  11.6. 
C)  8.8. 
D)  13.6. 
A)  7.6. 
B)  11.6. 
C)  8.8. 
D)  13.6.

Question 11

The probability of both sample information and a particular state of nature occurring simultaneously is _____ probability.

Accepted Answer

A)  posterior 
B)  joint 
C)  prior 
D)  conditional 
A)  posterior 
B)  joint 
C)  prior 
D)  conditional

Question 12

Below you are given a revenue payoff table involving three decision alternatives and two states of nature.   ​ The probability of the occurrence of state of nature s1 is .4.
The expected value of perfect information equals

Accepted Answer

A)  13,000. 
B)  14,000. 
C)  15,000. 
D)  16,000. 
A)  13,000. 
B)  14,000. 
C)  15,000. 
D)  16,000.

Question 13

A decision criterion which weights the payoff for each decision by its probability of occurrence is the

Accepted Answer

A)  payoff criterion. 
B)  expected value criterion. 
C)  decision strategy. 
D)  expected value of perfect information criterion. 
A)  payoff criterion. 
B)  expected value criterion. 
C)  decision strategy. 
D)  expected value of perfect information criterion.

Question 14

Below you are given a profit payoff table involving three decision alternatives and three states of nature.   ​ The probability of occurrence of s1 is .1 and the probability of occurrence of s2 is .3.
The expected value of alternative C is

Accepted Answer

A)  30.0. 
B)  6.5. 
C)  3. 
D)  5.5. 
A)  30.0. 
B)  6.5. 
C)  3. 
D)  5.5.

Question 15

An uncertain future event affecting the consequence, or payoff, associated with a decision is known as

Accepted Answer

A)  decision alternative. 
B)  payoff node. 
C)  chance event. 
D)  uncertain probability. 
A)  decision alternative. 
B)  payoff node. 
C)  chance event. 
D)  uncertain probability.

Question 16

Nodes indicating points where an uncertain event will occur are known as _____ nodes.

Accepted Answer

A)  decision 
B)  chance 
C)  unconditional 
D)  conditional 
A)  decision 
B)  chance 
C)  unconditional 
D)  conditional

Question 17

The probability of one event given the known outcome of a (possibly) related event is known as _____ probability.

Accepted Answer

A)  posterior 
B)  joint 
C)  prior 
D)  conditional 
A)  posterior 
B)  joint 
C)  prior 
D)  conditional

Question 18

The outcomes of future events that cannot be controlled by the decision maker are called

Accepted Answer

A)  decision outcomes. 
B)  states of nature. 
C)  prior events. 
D)  posterior events. 
A)  decision outcomes. 
B)  states of nature. 
C)  prior events. 
D)  posterior events.

Question 19

The result obtained when a decision alternative is chosen and a chance event occurs is known as

Accepted Answer

A)  decision event. 
B)  consequence. 
C)  state of nature. 
D)  conditional probability. 
A)  decision event. 
B)  consequence. 
C)  state of nature. 
D)  conditional probability.

Question 20

A sequence of decisions and chance outcomes that provide the optimal solution to a decision problem is called​

Accepted Answer

A)  ​a payoff table. 
B)  ​the expected value approach. 
C)  ​a decision strategy. 
D)  an optimal plan. 
A)  ​a payoff table. 
B)  ​the expected value approach. 
C)  ​a decision strategy. 
D)  an optimal plan.

Exam 19: Decision Analysis

The approach used to determine the optimal decision strategy involves​

The expected opportunity loss of the best decision alternative is the

Below you are given an income payoff table involving three decision alternatives and two states of nature. ​ The probability of the occurrence of s1 = .3. The expected value of alternative A is

A tabular representation of the payoffs for a decision problem is a

Experts in problem solving agree that the first step in solving a complex decision problem is to​

A line or arc connecting the nodes of a decision tree is called a(n)

The _____ leaving the decision node correspond to the decision alternatives.

When working backward through a decision tree, the analyst should​

Below you are given a profit payoff table involving two decision alternatives and three states of nature. ​ The probability that s1 will occur is .2; the probability that s2 will occur is .6. The expected value of the best alternative equals

Below you are given a profit payoff table involving three decision alternatives and two states of nature. ​ The probability of occurrence of s1 = .2. The expected value of alternative A is

The probability of both sample information and a particular state of nature occurring simultaneously is _____ probability.

Below you are given a revenue payoff table involving three decision alternatives and two states of nature. ​ The probability of the occurrence of state of nature s1 is .4. The expected value of perfect information equals

A decision criterion which weights the payoff for each decision by its probability of occurrence is the

Below you are given a profit payoff table involving three decision alternatives and three states of nature. ​ The probability of occurrence of s1 is .1 and the probability of occurrence of s2 is .3. The expected value of alternative C is

An uncertain future event affecting the consequence, or payoff, associated with a decision is known as

Nodes indicating points where an uncertain event will occur are known as _____ nodes.

The probability of one event given the known outcome of a (possibly) related event is known as _____ probability.

The outcomes of future events that cannot be controlled by the decision maker are called

The result obtained when a decision alternative is chosen and a chance event occurs is known as

A sequence of decisions and chance outcomes that provide the optimal solution to a decision problem is called​

Data and Statistics

Descriptive Statistics: Tabular and Graphical Displays

Descriptive Statistics: Numerical Measures

Introduction to Probability

Discrete Probability Distributions

Continuous Probability Distributions

Sampling and Sampling Distributions

Interval Estimation

Hypothesis Tests

Inference About Means and Proportions With Two Populations

Inferences About Population Variances

Comparing Multiple Proportions, Tests of Independence and Goodness of Fit

Experimental Design and Analysis of Variance

Simple Linear Regression

Multiple Regression

Regression Analysis: Model Building

Time Series Analysis and Forecasting

Nonparametric Methods

Index Numbers

Statistical Methods for Quality Control

Sample Survey

Filters

The approach used to determine the optimal decision strategy involves

Below you are given an income payoff table involving three decision alternatives and two states of nature. The probability of the occurrence of s₁ = .3. The expected value of alternative A is

Experts in problem solving agree that the first step in solving a complex decision problem is to

When working backward through a decision tree, the analyst should

Below you are given a profit payoff table involving two decision alternatives and three states of nature. The probability that s₁ will occur is .2; the probability that s₂ will occur is .6. The expected value of the best alternative equals

Below you are given a profit payoff table involving three decision alternatives and two states of nature. The probability of occurrence of s₁ = .2. The expected value of alternative A is

Below you are given a revenue payoff table involving three decision alternatives and two states of nature. The probability of the occurrence of state of nature s₁ is .4. The expected value of perfect information equals

Below you are given a profit payoff table involving three decision alternatives and three states of nature. The probability of occurrence of s₁ is .1 and the probability of occurrence of s₂ is .3. The expected value of alternative C is

A sequence of decisions and chance outcomes that provide the optimal solution to a decision problem is called