Exam 6: Prescriptive Analytics: Optimization and Simulation

Many quantitative models of decision theory are based on comparing a single measure of effectiveness,generally some form of utility to the decision maker.

Business analysis is the monitoring,scanning,and interpretation of collected environmental information.

In decision making under uncertainty,it is assumed that complete knowledge is available.

The most common method for solving a risk analysis problem is to select the alternative with the

Which of the following is NOT a characteristic displayed by a LP allocation problem?

Which of the following is NOT a disadvantage of a simulation?

________ analysis attempts to assess the impact of a change in the input data or parameters on the proposed solution.

Simulation is the appearance of reality.

A(n)________ model can be constructed under assumed environments of certainty.

Every LP model is composed of ________ variables whose values are unknown and are searched for.

The components of a quantitative model are linked by ________ expressions.

A decision made under risk is also known as a probabilistic or stochastic decision-making situation.

Simulations are an experimental,expensive,error-prone method for gaining insight into complex decision-making situations.

Spreadsheets are clearly the most popular developer modeling tool.

Which of the following is NOT a component of a quantitative model?

Decision situations that involve a finite and usually not too large number of alternatives are modeled through an approach called decision analysis.

Risk ________ is a decision-making method that analyzes the risk (based on assumed known probabilities)associated with different alternatives.

In ________ simulation,one or more of the independent variables (e.g.,the demand in an inventory problem)are subject to chance variation.

Why is the Monte Carlo simulation popular for solving business problems?

A decision tree can be cumbersome if there are