Exam 20: Decision Making Online

SCENARIO 20-4 A stock portfolio has the following returns under the market conditions listed below. -Referring to Scenario 20-4, what is the coefficient of variation?

SCENARIO 20-2 The following payoff matrix is given in dollars. Suppose the probability of Event 1 is 0.5 and Event 2 is 0.5. -Referring to Scenario 20-2, the EOL for Action A is

SCENARIO 20-6 A student wanted to find out the optimal strategy to study for a Business Statistics exam with scores out of 100 possible points.He constructed the following payoff table based on the mean amount of time he needed to study every week for the course and the degree of difficulty of the exam.From the information that he gathered from students who had taken the course, he concluded that there was a 40% probability that the exam would be easy. -Referring to Scenario 20-6, what is the expected monetary value of spending 8 hours per week on average studying for the exam?

_________ is a procedure for revising probabilities based upon additional information.

SCENARIO 20-5 The following payoff table shows profits associated with a set of 2 alternatives under 3 possible events. Suppose that the probability of Event 1 is 0.2, Event 2 is 0.5, and Event 3 is 0.3. -Referring to Scenario 20-5, what is the EVPI for this problem?

SCENARIO 20-1 The following payoff table shows profits associated with a set of 3 alternatives under 2 possible states of nature. where: -Referring to Scenario 20-1, what is the best action using the maximin criterion?

SCENARIO 20-1 The following payoff table shows profits associated with a set of 3 alternatives under 2 possible states of nature. where: -Referring to Scenario 20-1, if the probability of S1 is 0.2, what is the optimal alternative using EOL?

Removal of uncertainty from a decision-making problem leads to a case referred to as perfect information.

Blossom's Flowers purchases roses for sale for Valentine's Day.The roses are purchased for $10 a dozen and are sold for $20 a dozen.Any roses not sold on Valentine's Day can be sold for $5 per dozen.The owner will purchase 1 of 3 amounts of roses for Valentine's Day: 100, 200, or 400 dozen roses.The number of alternatives for the payoff table is

SCENARIO 20-2 The following payoff matrix is given in dollars. Suppose the probability of Event 1 is 0.5 and Event 2 is 0.5. -Referring to Scenario 20-2, the coefficient of variation for Action A is

SCENARIO 20-1 The following payoff table shows profits associated with a set of 3 alternatives under 2 possible states of nature. where: -Referring to Scenario 20-1, if the probability of S1 is 0.5, then the coefficient of variation for A2 is

SCENARIO 20-5 The following payoff table shows profits associated with a set of 2 alternatives under 3 possible events. Suppose that the probability of Event 1 is 0.2, Event 2 is 0.5, and Event 3 is 0.3. -Referring to Scenario 20-5, what is the optimal action using the return to risk ratio?

The difference between expected payoff under certainty and expected value of the best act without certainty is the:

SCENARIO 20-1 The following payoff table shows profits associated with a set of 3 alternatives under 2 possible states of nature. where: -Referring to Scenario 20-1, if the probability of S1 is 0.2 and S2 is 0.8, then the expected monetary value of A1 is

In a local cellular phone area, company A accounts for 60% of the cellular phone market, while company B accounts for the remaining 40% of the market.Of the cellular calls made with company A, 1% of the calls will have some sort of interference, while 2% of the cellular calls with company B will have interference.If a cellular call is selected at random and has interference, what is the probability that it was with company A?

Look at the utility function graphed below and select the type of decision-maker that corresponds to the graph.

SCENARIO 20-6 A student wanted to find out the optimal strategy to study for a Business Statistics exam with scores out of 100 possible points.He constructed the following payoff table based on the mean amount of time he needed to study every week for the course and the degree of difficulty of the exam.From the information that he gathered from students who had taken the course, he concluded that there was a 40% probability that the exam would be easy. -Referring to Scenario 20-6, what is the opportunity loss of spending 4 hours per week on average studying for the exam when the exam turns out to be easy?

Blossom's Flowers purchases roses for sale for Valentine's Day.The roses are purchased for $10 a dozen and are sold for $20 a dozen.Any roses not sold on Valentine's Day can be sold for $5 per dozen.The owner will purchase 1 of 3 amounts of roses for Valentine's Day: 100, 200, or 400 dozen roses.If the probability of selling 100 dozen roses is 0.2 and 200 dozen roses is 0.5, then the probability of selling 400 dozen roses is

SCENARIO 20-1 The following payoff table shows profits associated with a set of 3 alternatives under 2 possible states of nature. where: -Referring to Scenario 20-1, if the probability of S1 is 0.5, then the return to risk ratio for A3 is

SCENARIO 20-2 The following payoff matrix is given in dollars. Suppose the probability of Event 1 is 0.5 and Event 2 is 0.5. -Referring to Scenario 20-2, what is the best action using the maximax criterion?