Question 1

The expected utility is the utility of the expected monetary value.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

​ @#IMG-DLM& Choose

Question 3

When the expected value approach is used to select a decision alternative,the payoff that actually occurs will usually have a value different from the expected value.

Accepted Answer

A) True 
 B)False

Question 4

Decision tree probabilities refer to the probability of

Accepted Answer

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

Question 5

The purchase of insurance and lottery tickets shows that people make decisions based on

Accepted Answer

A) expected value. 
B) sample information. 
C) utility. 
D) maximum likelihood. 
A) expected value. 
B) sample information. 
C) utility. 
D) maximum likelihood.

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

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 8

Risk analysis helps the decision maker recognize the difference between the expected value of a decision alternative and the payoff that may actually occur.

Accepted Answer

A) True 
 B)False

Question 9

A decision tree provides

Accepted Answer

A) the only method for analyzing decisions. 
B) a deterministic approach to decision analysis. 
C) the absolute value of the decision. 
D) an objective way of determining the relative value of each decision alternative. 
A) the only method for analyzing decisions. 
B) a deterministic approach to decision analysis. 
C) the absolute value of the decision. 
D) an objective way of determining the relative value of each decision alternative.

Question 10

An appliance dealer must decide how many (if any)new microwave ovens to order for next month.The ovens cost $220 and sell for $300.Because the oven company is coming out with a new product line in two months,any ovens not sold next month will have to be sold at the dealer's half price clearance sale.Additionally,the appliance dealer feels he suffers a loss of $25 for every oven demanded when he is out of stock.On the basis of past months' sales data,the dealer estimates the probabilities of monthly demand (D)for 0,1,2,or 3 ovens to be 0.3,0.4,0.2,and 0.1,respectively.The dealer is considering conducting a telephone survey on customers' attitudes towards microwave ovens.The results of the survey will either be favorable (F),unfavorable (U),or no opinion (N).The dealer's probability estimates for the survey results based on the number of units demanded are:   ​ 
a.What is the dealer's optimal decision without conducting the survey?
b.What is the EVPI?
c.Based on the survey results,what is the optimal decision strategy for the dealer?
d.What is the maximum amount he should pay for this survey?

Accepted Answer

The answer of An appliance dealer must decide how many...

Question 11

Sensitivity analysis

Accepted Answer

A) considers how sensitive the decision maker is to risk. 
B) considers how changes in the number of states of nature can impact the recommended decision. 
C) considers how changes in various aspects of the problem affect the recommended decision alternative. 
D) None of these are correct. 
A) considers how sensitive the decision maker is to risk. 
B) considers how changes in the number of states of nature can impact the recommended decision. 
C) considers how changes in various aspects of the problem affect the recommended decision alternative. 
D) None of these are correct.

Question 12

Decision alternatives are structured so that several could occur simultaneously.

Accepted Answer

A) True 
 B)False

Question 13

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) minimin approach. 
A) minimax approach. 
B) maximin approach. 
C) maximax approach. 
D) minimin approach.

Question 14

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

Accepted Answer

A) minimax approach. 
B) maximin approach. 
C) maximax approach. 
D) minimin approach. 
A) minimax approach. 
B) maximin approach. 
C) maximax approach. 
D) minimin approach.

Question 15

As long as the monetary value of payoffs stays within a range that the decision maker considers reasonable,selecting the decision alternative with the best expected value usually leads to selection of the most preferred decision.

Accepted Answer

A) True 
 B)False

Question 16

Metropolitan Cablevision has the choice of using one of three DVR systems.Profits are believed to be a function of customer acceptance.The payoff to Metropolitan for the three systems is as follows:
​   ​
The probabilities of customer acceptance for each system are as follows:
​   ​
The first vice president believes that the indifference probabilities for Metropolitan should be as follows:
​   ​
The second vice president believes Metropolitan should assign the following utility values:
​   ​ 
a.Which vice president is a risk taker? Which one is risk averse?
b.Which system will each vice president recommend?
c.Which system would a risk-neutral vice president recommend?

Accepted Answer

​ a.Risk taker,second vice pre

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

A decision maker has developed the following decision tree.How sensitive is the choice between N and P to the probabilities of states of nature U and V,and which would you choose?
​

Accepted Answer

Choose N i

Question 19

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 20

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

Accepted Answer

A) True 
 B)False

The expected utility is the utility of the expected monetary value.

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

When the expected value approach is used to select a decision alternative,the payoff that actually occurs will usually have a value different from the expected value.

Decision tree probabilities refer to the probability of

The purchase of insurance and lottery tickets shows that people make decisions based on

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

In an influence diagram,decision nodes are represented by

Risk analysis helps the decision maker recognize the difference between the expected value of a decision alternative and the payoff that may actually occur.

A decision tree provides

Sensitivity analysis

Decision alternatives are structured so that several could occur simultaneously.

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

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

As long as the monetary value of payoffs stays within a range that the decision maker considers reasonable,selecting the decision alternative with the best expected value usually leads to selection of the most preferred decision.

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

A decision maker has developed the following decision tree.How sensitive is the choice between N and P to the probabilities of states of nature U and V,and which would you choose?

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.

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

Introduction

An Introduction to Linear Programming

Linear Programming: Sensitivity Analysis and Interpretation of Solution

Linear Programming Applications in Marketing, finance, and OM

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

Time Series Analysis and Forecasting

Markov Processes

Linear Programming: Simplex Method

Simplex-Based Sensitivity Analysis and Duality

Solution Procedures for Transportation and Assignment Problems

Minimal Spanning Tree

Dynamic Programming

Filters

Exam 13: Decision Analysis

The expected utility is the utility of the expected monetary value.

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

When the expected value approach is used to select a decision alternative,the payoff that actually occurs will usually have a value different from the expected value.

Decision tree probabilities refer to the probability of

The purchase of insurance and lottery tickets shows that people make decisions based on

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

In an influence diagram,decision nodes are represented by

Risk analysis helps the decision maker recognize the difference between the expected value of a decision alternative and the payoff that may actually occur.

A decision tree provides

Sensitivity analysis

Decision alternatives are structured so that several could occur simultaneously.

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

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

As long as the monetary value of payoffs stays within a range that the decision maker considers reasonable,selecting the decision alternative with the best expected value usually leads to selection of the most preferred decision.

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

A decision maker has developed the following decision tree.How sensitive is the choice between N and P to the probabilities of states of nature U and V,and which would you choose? ​

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.

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

Introduction

An Introduction to Linear Programming

Linear Programming: Sensitivity Analysis and Interpretation of Solution

Linear Programming Applications in Marketing, finance, and OM

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

Time Series Analysis and Forecasting

Markov Processes

Linear Programming: Simplex Method

Simplex-Based Sensitivity Analysis and Duality

Solution Procedures for Transportation and Assignment Problems

Minimal Spanning Tree

Dynamic Programming

Filters

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

A decision maker has developed the following decision tree.How sensitive is the choice between N and P to the probabilities of states of nature U and V,and which would you choose?