Question 1

Identify the 4 steps of the expected-value criterion.

Accepted Answer

The 4 steps of the expected-value criter

Question 2

Jamie Anderson is analyzing the following payoff table. She is trying to choose how many salads to make in advance each day before she knows the actual demand.

Accepted Answer

The maximax rule involves selecting the

Question 3

All three decision criteria (maximax, maximin, minimax regret) lead to the same decisions, describing a specific decision-making philosophy.

Accepted Answer

A) True 
 B)False

Question 4

In reality, the typical business decision-making environment is one of certainty rather than uncertainty.

Accepted Answer

A) True 
 B)False

Question 5

Decision-tree analysis provides a way to take into account future decisions when making the most current decision.

Accepted Answer

A) True 
 B)False

Question 6

Select the best answer. A decision maker must identify the outcomes for each decision alternative and

Accepted Answer

A)  keeps the choices organized by constructing a table. 
B)  determine the biggest money making alternative. 
C)  assess probabilities associated with each outcome. 
D)  all of the above. 
A)  keeps the choices organized by constructing a table. 
B)  determine the biggest money making alternative. 
C)  assess probabilities associated with each outcome. 
D)  all of the above.

Question 7

Some decision criteria take into account the probabilities associated with each outcome. One of the options, the expected-value criterion, refers to the long-run average outcome for a given alternative.

Accepted Answer

A) True 
 B)False

Question 8

Not all decisions require the use of decision analysis.

Accepted Answer

A) True 
 B)False

Question 9

Decision tree analysis could be missing branches on the tree. Define one important consideration that could be left out.

Accepted Answer

Unfortunately, some important

Question 10

A conservative decision criterion for dealing with uncertainty without using probability is referred to as the maximin criterion.

Accepted Answer

A) True 
 B)False

Question 11

The established basis for making a decision gives us the criteria for analyzing a decision and making a "best" choice.

Accepted Answer

A) True 
 B)False

Question 12

Nonprobabilistic criteria are used when either the probabilities associated with the possible payoffs are unknown or the decision maker lacks confidence and/or information with which to assess probabilities for the various payoffs.

Accepted Answer

A) True 
 B)False

Question 13

The payoffs associated with all possible combinations of alternatives and states of nature constitute a profit or loss table.

Accepted Answer

A) True 
 B)False

Question 14

A loss of convenience is the difference between the actual payoff that occurs for a decision and the optimal payoff for the same state of nature.

Accepted Answer

A) True 
 B)False

Question 15

In an uncertain environment, the best decision might not result in the best outcome.

Accepted Answer

A) True 
 B)False

Question 16

An optimistic decision criterion for dealing with uncertainty without using probability is the maximax criterion.

Accepted Answer

A) True 
 B)False

Question 17

Explain as clearly as possible what the "best decision" is for a business problem and what the best decision will be associated with in a certainty environment.

Accepted Answer

By "best decision," we mean the alternat

Question 18

A decision criterion that considers the results of selecting the "wrong" alternative is referred to as the maximax regret criterion.

Accepted Answer

A) True 
 B)False

Question 19

The possible outcomes in a decision situation over which the decision maker has no control is referred to as the choices.

Accepted Answer

A) True 
 B)False

Question 20

Describe the process of growing a decision tree and why it is such a valuable method of making a business decision.

Accepted Answer

We develop the decision tree by organizi

Identify the 4 steps of the expected-value criterion.

Jamie Anderson is analyzing the following payoff table. She is trying to choose how many salads to make in advance each day before she knows the actual demand.

All three decision criteria (maximax, maximin, minimax regret) lead to the same decisions, describing a specific decision-making philosophy.

In reality, the typical business decision-making environment is one of certainty rather than uncertainty.

Decision-tree analysis provides a way to take into account future decisions when making the most current decision.

Select the best answer. A decision maker must identify the outcomes for each decision alternative and

Some decision criteria take into account the probabilities associated with each outcome. One of the options, the expected-value criterion, refers to the long-run average outcome for a given alternative.

Not all decisions require the use of decision analysis.

Decision tree analysis could be missing branches on the tree. Define one important consideration that could be left out.

A conservative decision criterion for dealing with uncertainty without using probability is referred to as the maximin criterion.

The established basis for making a decision gives us the criteria for analyzing a decision and making a "best" choice.

Nonprobabilistic criteria are used when either the probabilities associated with the possible payoffs are unknown or the decision maker lacks confidence and/or information with which to assess probabilities for the various payoffs.

The payoffs associated with all possible combinations of alternatives and states of nature constitute a profit or loss table.

A loss of convenience is the difference between the actual payoff that occurs for a decision and the optimal payoff for the same state of nature.

In an uncertain environment, the best decision might not result in the best outcome.

An optimistic decision criterion for dealing with uncertainty without using probability is the maximax criterion.

Explain as clearly as possible what the "best decision" is for a business problem and what the best decision will be associated with in a certainty environment.

A decision criterion that considers the results of selecting the "wrong" alternative is referred to as the maximax regret criterion.

The possible outcomes in a decision situation over which the decision maker has no control is referred to as the choices.

Describe the process of growing a decision tree and why it is such a valuable method of making a business decision.

The Where, Why, and How of Data Collection

Graphs, Charts and Tablesdescribing Your Data

Describing Data Using Numerical Measures

Introduction to Probability

Discrete Probability Distributions

Introduction to Continuous Probability Distributions

Introduction to Sampling Distributions

Estimating Single Population Parameters

Introduction to Hypothesis Testing

Estimation and Hypothesis Testing for Two Population Parameters

Hypothesis Tests and Estimation for Population Variances

Analysis of Variance

Goodness-Of-Fit Tests and Contingency Analysis

Introduction to Linear Regression and Correlation Analysis

Multiple Regression Analysis and Model Building

Analyzing and Forecasting Time-Series Data

Introduction to Nonparametric Statistics

Introducing Business Analytics

Introduction to Quality and Statistical Process Control

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Exam 19: Introduction to Decision Analysis

Identify the 4 steps of the expected-value criterion.

Jamie Anderson is analyzing the following payoff table. She is trying to choose how many salads to make in advance each day before she knows the actual demand.

All three decision criteria (maximax, maximin, minimax regret) lead to the same decisions, describing a specific decision-making philosophy.

In reality, the typical business decision-making environment is one of certainty rather than uncertainty.

Decision-tree analysis provides a way to take into account future decisions when making the most current decision.

Select the best answer. A decision maker must identify the outcomes for each decision alternative and

Some decision criteria take into account the probabilities associated with each outcome. One of the options, the expected-value criterion, refers to the long-run average outcome for a given alternative.

Not all decisions require the use of decision analysis.

Decision tree analysis could be missing branches on the tree. Define one important consideration that could be left out.

A conservative decision criterion for dealing with uncertainty without using probability is referred to as the maximin criterion.

The established basis for making a decision gives us the criteria for analyzing a decision and making a "best" choice.

Nonprobabilistic criteria are used when either the probabilities associated with the possible payoffs are unknown or the decision maker lacks confidence and/or information with which to assess probabilities for the various payoffs.

The payoffs associated with all possible combinations of alternatives and states of nature constitute a profit or loss table.

A loss of convenience is the difference between the actual payoff that occurs for a decision and the optimal payoff for the same state of nature.

In an uncertain environment, the best decision might not result in the best outcome.

An optimistic decision criterion for dealing with uncertainty without using probability is the maximax criterion.

Explain as clearly as possible what the "best decision" is for a business problem and what the best decision will be associated with in a certainty environment.

A decision criterion that considers the results of selecting the "wrong" alternative is referred to as the maximax regret criterion.

The possible outcomes in a decision situation over which the decision maker has no control is referred to as the choices.

Describe the process of growing a decision tree and why it is such a valuable method of making a business decision.

The Where, Why, and How of Data Collection

Graphs, Charts and Tablesdescribing Your Data

Describing Data Using Numerical Measures

Introduction to Probability

Discrete Probability Distributions

Introduction to Continuous Probability Distributions

Introduction to Sampling Distributions

Estimating Single Population Parameters

Introduction to Hypothesis Testing

Estimation and Hypothesis Testing for Two Population Parameters

Hypothesis Tests and Estimation for Population Variances

Analysis of Variance

Goodness-Of-Fit Tests and Contingency Analysis

Introduction to Linear Regression and Correlation Analysis

Multiple Regression Analysis and Model Building

Analyzing and Forecasting Time-Series Data

Introduction to Nonparametric Statistics

Introducing Business Analytics

Introduction to Quality and Statistical Process Control

Filters