Question 1

Rational decision makers are never willing to violate the expected monetary value (EMV)maximization criterion when large amounts of money are at stake.

Accepted Answer

A) True 
 B)False

Question 2

The decision maker now has $15,000 and two possible decisions.For decision 1,she loses $1,000 for certain.For decision 2,she loses $0 with probability 0.9 and loses $4,000 with probability 0.10.Which decision maximizes the expected utility of her net wealth?

Accepted Answer

@#IMG-DLM& The tree above,which again co

Question 3

What impact,if any,does the insurance premium cost have on her decision? Briefly explain your answer

Accepted Answer

If the insurance premium were to increas

Question 4

Tornado charts and spider charts can be used to determine which input variables have the most impact on the expected value in a decision problem

Accepted Answer

A) True 
 B)False

Question 5

What format is optimal? What is the expected profit in that case?

Accepted Answer

The tree above shows that the

Question 6

What should the credit union do? What is their expected profit?

Accepted Answer

The tree above shows that the

Rational decision makers are never willing to violate the expected monetary value (EMV)maximization criterion when large amounts of money are at stake.

The decision maker now has $15,000 and two possible decisions.For decision 1,she loses $1,000 for certain.For decision 2,she loses $0 with probability 0.9 and loses $4,000 with probability 0.10.Which decision maximizes the expected utility of her net wealth?

What impact,if any,does the insurance premium cost have on her decision? Briefly explain your answer

Tornado charts and spider charts can be used to determine which input variables have the most impact on the expected value in a decision problem

What format is optimal? What is the expected profit in that case?

What should the credit union do? What is their expected profit?

Introduction to Data Analysis and Decision Making

Describing the Distribution of a Single Variable

Finding Relationships Among Variables

Probability and Probability Distributions

Normal, binomial, poisson, and Exponential Distributions

Sampling and Sampling Distributions

Confidence Interval Estimation

Hypothesis Testing

Regression Analysis: Estimating Relationships

Regression Analysis: Statistical Inference

Time Series Analysis and Forecasting

Introduction to Optimization Modeling

Optimization Modeling: Applications

Introduction to Simulation Modeling

Simulation Models

Filters

Exam 6: Decision Making Under Uncertainty

Rational decision makers are never willing to violate the expected monetary value (EMV)maximization criterion when large amounts of money are at stake.

The decision maker now has $15,000 and two possible decisions.For decision 1,she loses $1,000 for certain.For decision 2,she loses $0 with probability 0.9 and loses $4,000 with probability 0.10.Which decision maximizes the expected utility of her net wealth?

What impact,if any,does the insurance premium cost have on her decision? Briefly explain your answer

Tornado charts and spider charts can be used to determine which input variables have the most impact on the expected value in a decision problem

What format is optimal? What is the expected profit in that case?

What should the credit union do? What is their expected profit?

Introduction to Data Analysis and Decision Making

Describing the Distribution of a Single Variable

Finding Relationships Among Variables

Probability and Probability Distributions

Normal, binomial, poisson, and Exponential Distributions

Sampling and Sampling Distributions

Confidence Interval Estimation

Hypothesis Testing

Regression Analysis: Estimating Relationships

Regression Analysis: Statistical Inference

Time Series Analysis and Forecasting

Introduction to Optimization Modeling

Optimization Modeling: Applications

Introduction to Simulation Modeling

Simulation Models

Filters