Question 1

The minimum expected opportunity loss provides the best decision, regardless of whether the decision analysis involves minimization or maximization.

Accepted Answer

A) True 
 B)False  True

Question 2

Sample information with an efficiency rating of 100% is perfect information.

Accepted Answer

A) True 
 B)False  True

Question 3

The expected value approach is more appropriate for a one-time decision than a repetitive decision.

Accepted Answer

A) True 
 B)False  False

Question 4

States of nature should be defined so that one and only one will actually occur.

Accepted Answer

A) True 
 B)False

Question 5

After all probabilities and payoffs are placed on a decision tree, the decision maker calculates expected values at state of nature nodes and makes selections at decision nodes.

Accepted Answer

A) True 
 B)False

Question 6

Fold back this decision tree. Clearly state the decision strategy you determine.

Accepted Answer

@#IMG-DLM& Choose A.

Question 7

Decision tree probabilities refer to

Accepted Answer

A)  the probability of finding the optimal strategy 
B)  the probability of the decision being made 
C)  the probability of overlooked choices 
D)  the probability of an uncertain event occurring 
A)  the probability of finding the optimal strategy 
B)  the probability of the decision being made 
C)  the probability of overlooked choices 
D)  the probability of an uncertain event occurring

Question 8

EVPI equals the expected regret associated with the minimax decision.

Accepted Answer

A) True 
 B)False

Question 9

Which of the methods for decision making best protects the decision maker from undesirable results?

Accepted Answer

A)  the optimistic approach 
B)  the conservative approach 
C)  minimum regret 
D)  minimax regret 
A)  the optimistic approach 
B)  the conservative approach 
C)  minimum regret 
D)  minimax regret

Question 10

For a minimization problem, the optimistic approach is often referred to as the

Accepted Answer

A)  minimax approach 
B)  maximin approach 
C)  maximax approach 
D)  minimum approach 
A)  minimax approach 
B)  maximin approach 
C)  maximax approach 
D)  minimum approach

Question 11

If sample information is obtained, the result of the sample information will be either positive or negative. No matter which result occurs, the choice to select option A or option B exists. And no matter which option is chosen, the eventual outcome will be good or poor. Complete the table.

Accepted Answer

The answer of If sample information is obtained, the result...

Question 12

Square nodes in a decision tree indicate that a decision must be made.

Accepted Answer

A) True 
 B)False

Question 13

The efficiency of sample information is

Accepted Answer

A)  EVSI*(100%) 
B)  EVSI/EVPI*(100%) 
C)  EVwoSI/EVwoPI*(100%) 
D)  EVwSI/EVwoSI*(100%) 
A)  EVSI*(100%) 
B)  EVSI/EVPI*(100%) 
C)  EVwoSI/EVwoPI*(100%) 
D)  EVwSI/EVwoSI*(100%)

Question 14

States of nature

Accepted Answer

A)  can describe uncontrollable natural events such as floods or freezing temperatures. 
B)  can be selected by the decision maker. 
C)  cannot be enumerated by the decision maker. 
D)  All of the alternatives are true. 
A)  can describe uncontrollable natural events such as floods or freezing temperatures. 
B)  can be selected by the decision maker. 
C)  cannot be enumerated by the decision maker. 
D)  All of the alternatives are true.

Question 15

For a minimization problem, the conservative approach is often referred to as the

Accepted Answer

A)  minimax approach 
B)  maximin approach 
C)  maximax approach 
D)  minimum approach 
A)  minimax approach 
B)  maximin approach 
C)  maximax approach 
D)  minimum approach

Question 16

A decision strategy is a sequence of decisions and chance outcomes, where the decisions chosen depend on the yet to be determined outcomes of chance events.

Accepted Answer

A) True 
 B)False

Question 17

Expected value is the sum of the weighted payoff possibilities at a circular node in a decision tree.

Accepted Answer

A) True 
 B)False

Question 18

A decision tree

Accepted Answer

A)  presents all decision alternatives first and follows them with all states of nature. 
B)  presents all states of nature first and follows them with all decision alternatives. 
C)  alternates the decision alternatives and states of nature. 
D)  arranges decision alternatives and states of nature in their natural chronological order. 
A)  presents all decision alternatives first and follows them with all states of nature. 
B)  presents all states of nature first and follows them with all decision alternatives. 
C)  alternates the decision alternatives and states of nature. 
D)  arranges decision alternatives and states of nature in their natural chronological order.

Question 19

In an influence diagram, decision nodes are represented by

Accepted Answer

A)  circles or ovals 
B)  squares or rectangles 
C)  diamonds 
D)  triangles 
A)  circles or ovals 
B)  squares or rectangles 
C)  diamonds 
D)  triangles

Question 20

If P(high) = .3, P(low) = .7, P(favorable | high) = .9, and P(unfavorable | low) = .6, then P(favorable) =

Accepted Answer

A)  .10 
B)  .27 
C)  .30 
D)  .55 
A)  .10 
B)  .27 
C)  .30 
D)  .55

The minimum expected opportunity loss provides the best decision, regardless of whether the decision analysis involves minimization or maximization.

Sample information with an efficiency rating of 100% is perfect information.

The expected value approach is more appropriate for a one-time decision than a repetitive decision.

States of nature should be defined so that one and only one will actually occur.

After all probabilities and payoffs are placed on a decision tree, the decision maker calculates expected values at state of nature nodes and makes selections at decision nodes.

Fold back this decision tree. Clearly state the decision strategy you determine.

Decision tree probabilities refer to

EVPI equals the expected regret associated with the minimax decision.

Which of the methods for decision making best protects the decision maker from undesirable results?

For a minimization problem, the optimistic approach is often referred to as the

If sample information is obtained, the result of the sample information will be either positive or negative. No matter which result occurs, the choice to select option A or option B exists. And no matter which option is chosen, the eventual outcome will be good or poor. Complete the table.

Square nodes in a decision tree indicate that a decision must be made.

The efficiency of sample information is

States of nature

For a minimization problem, the conservative approach is often referred to as the

A decision strategy is a sequence of decisions and chance outcomes, where the decisions chosen depend on the yet to be determined outcomes of chance events.

Expected value is the sum of the weighted payoff possibilities at a circular node in a decision tree.

A decision tree

In an influence diagram, decision nodes are represented by

If P(high) = .3, P(low) = .7, P(favorable | high) = .9, and P(unfavorable | low) = .6, then P(favorable) =

Introduction

An Introduction to Linear Programming

Linear Programming: Sensitivity Analysis and Interpretation of Solution

Linear Programming Applications in Marketing, Finance, and Operations Management

Advanced Linear Programming Applications

Distribution and Network Models

Integer Linear Programming

Nonlinear Optimization Models

Project Scheduling: Pertcpm

Inventory Models

Waiting Line Models

Simulation

Multicriteria Decisions

Forecasting

Markov Processes

Filters

Exam 13: Decision Analysis

The minimum expected opportunity loss provides the best decision, regardless of whether the decision analysis involves minimization or maximization.

Sample information with an efficiency rating of 100% is perfect information.

The expected value approach is more appropriate for a one-time decision than a repetitive decision.

States of nature should be defined so that one and only one will actually occur.

After all probabilities and payoffs are placed on a decision tree, the decision maker calculates expected values at state of nature nodes and makes selections at decision nodes.

Fold back this decision tree. Clearly state the decision strategy you determine.

Decision tree probabilities refer to

EVPI equals the expected regret associated with the minimax decision.

Which of the methods for decision making best protects the decision maker from undesirable results?

For a minimization problem, the optimistic approach is often referred to as the

If sample information is obtained, the result of the sample information will be either positive or negative. No matter which result occurs, the choice to select option A or option B exists. And no matter which option is chosen, the eventual outcome will be good or poor. Complete the table.

Square nodes in a decision tree indicate that a decision must be made.

The efficiency of sample information is

States of nature

For a minimization problem, the conservative approach is often referred to as the

A decision strategy is a sequence of decisions and chance outcomes, where the decisions chosen depend on the yet to be determined outcomes of chance events.

Expected value is the sum of the weighted payoff possibilities at a circular node in a decision tree.

A decision tree

In an influence diagram, decision nodes are represented by

If P(high) = .3, P(low) = .7, P(favorable | high) = .9, and P(unfavorable | low) = .6, then P(favorable) =

Introduction

An Introduction to Linear Programming

Linear Programming: Sensitivity Analysis and Interpretation of Solution

Linear Programming Applications in Marketing, Finance, and Operations Management

Advanced Linear Programming Applications

Distribution and Network Models

Integer Linear Programming

Nonlinear Optimization Models

Project Scheduling: Pertcpm

Inventory Models

Waiting Line Models

Simulation

Multicriteria Decisions

Forecasting

Markov Processes

Filters