Deck 19: Game Theory

Question 1

The value of a two-person pure strategy game is equal to the lower value of the game.

Answer 1

True

Question 2

The lower value of the game is selected as the maximum of the minimum numbers in a row.

Answer 2

True

Question 3

When there is no saddle point, the game is a mixed strategy game.

Answer 3

True

Question 4

The cornerstone of game theory is Harsanui equilibrium and Harsanui bargaining problems.

Question 5

The upper value of the game is selected as the minimum of the maximum numbers in a column.

Question 6

In a competitive business market, one company's strategy might be to minimize its potential losses.

Question 7

Game theory is not very useful during union negotiations.

Question 8

The minimax criterion is equivalent to maximizing one's minimum gains.

Question 9

Game theory has been used to plan warfare strategies.

Question 10

Game theory is a way to consider the impact of games on business.

Question 11

If the upper value of the game is larger than the lower value of the game, a saddle point condition exists.

Question 12

Game models are classified by the number of players, the maximum payoffs, and the likelihood of each outcome.

Question 13

Dominance increases the size of games by allowing additional strategies to be considered.

Question 14

In a competitive business market, one company's strategy might be to maximize its minimum profits.

Question 15

A saddle point is a situation in which both players are facing pure strategists.

Question 16

The saddle point is always the largest number in the column and smallest number in each row of a payoff matrix.

Question 17

Minimizing one's maximum losses is identical to maximizing one's minimum gains.

Question 18

Duopoly exists when two entities are the sole entrants in the market.

Question 19

When a saddle point is present, the strategy each player should follow will always be the same.

Question 20

In a zero-sum game, what one player gains is lost by the other.

Question 21

In a two-person, zero sum game

A)the sum of losses equals zero.
B)the sum of gains equals zero.
C)the sum of losses for one player must equal the sum of gains for the other player.
D)the sum of the player's gains must be equal.

Question 22

The minimax criterion is to

A)minimize one's maximum losses.
B)maximize one's maximum losses.
C)maximize one's maximum gains.
D)minimize one's minimum gains.

Question 23

Bagels RUS is expanding into a high-growth suburban area.To promote business and lure customers from the competing Wer Bagel store, they are considering offering a free dozen bagels to the first 50 customers or radio advertisement.The payoff for Bagels RUS is given in the table below.What is Wer Bagels' (Y)best strategy?

A)X₁
B)X₂
C)Y₁
D)Y₂

Question 24

Bagels RUS is expanding into a high-growth suburban area.To promote business and lure customers from the competing Wer Bagel store, they are considering offering a free dozen bagels to the first 50 customers or radio advertisement.The payoff for Bagels RUS is given in the table below.What is the saddle point, if any, for the bagel stores?

A)3
B)6
C)2
D)-2

Question 25

CleanClothes dry cleaners is opening a pick-up and delivery service.There is only one other dry cleaner that currently offers this service.To advertise, CleanClothes is considering either newspaper ads or attaching flyers to the doors of many local homes.The payoff for each of CleanClothes' potential strategies is given in the table below.What strategy will the existing dry cleaners (Y)play?

A)X₁
B)X₂
C)Y₁
D)Y₂

Question 26

The value of a mixed strategy game is

A)the maximum outcome of the game.
B)the minimum outcome of the game.
C)the outcome of the game played once.
D)the average outcome of the game played an infinite number of times.

Question 27

If it is known what percentage of the time each player plays each strategy, then the value of a two-person game can be computed

A)from only the optimal strategy row.
B)from only the optimal strategy column.
C)from any column or row.
D)except for a zero sum game.

Question 28

Bagels RUS is expanding into a high-growth suburban area.To promote business and lure customers from the competing Wer Bagel store, they are considering offering a free dozen bagels to the first 50 customers or radio advertisement.The payoff for Bagels RUS is given in the table below.What is Bagels RUS' (X)best strategy?

A)X₁
B)X₂
C)Y₁
D)Y₂

Question 29

Given the following two-person game, which strategy can be eliminated by use of dominance?

A)X₁
B)X₂
C)X₃
D)Y₁

Question 30

Game theory is the study of

A)how optimal strategies are formulated in conflict.
B)decisions and their consequences.
C)pure probability.
D)conditional probability.

Question 31

CleanClothes dry cleaners is opening a pick-up and delivery service.There is only one other dry cleaner that currently offers this service.To advertise, CleanClothes is considering either newspaper ads or attaching flyers to the doors of many local homes.The payoff for each of CleanClothes' potential strategies is given in the table below.What strategy will CleanClothes (X)play?

A)X₁
B)X₂
C)Y₁
D)Y₂

Question 32

Considering the following two-person game, the value of the game (if played many times)is

A)19.00.
B)4.75.
C)4.67.
D)Unable to be computed, as the α was not given.

Question 33

The saddle point in a payoff matrix is always the

A)largest number in its column and the largest number in its row.
B)largest number in its column and the smallest number in its row.
C)smallest number in its column and the largest number in its row.
D)smallest number in its column and the smallest number in its row.

Question 34

Consider the following two-person game, and determine the saddle point if it exists.

A)-3
B)2
C)4
D)6

Question 35

Considering the following two-person game, what percentage of the time should X play strategy X₂?

A)1/3
B)2/3
C)4/9
D)5/9

Question 36

Table M4-1
Adam and Eve each face three doors and must make a selection with payoffs as shown in the table.

What is the value of the game depicted in Table M4-1?

A)7
B)8
C)9
D)10

Question 37

The value of the following game is 2.5.Therefore,

A)X₁ will gain 2.5 points.
B)X₂ will gain 2.5 points.
C)X will gain 2.5 points.
D)Y will gain 2.5 points.

Question 38

CleanClothes dry cleaners is opening a pick-up and delivery service.There is only one other dry cleaner that currently offers this service.To advertise, CleanClothes is considering either newspaper ads or attaching flyers to the doors of many local homes.The payoff for each of CleanClothes' potential strategies is given in the table below.What is the saddle point, if any, of this game?

A)37
B)17
C)16
D)8

Question 39

Considering the following two-person game, what percentage of the time should Y play strategy Y₁?

A)1/3
B)2/3
C)4/9
D)5/9

Question 40

Consider the following two-person game.The payoff for X is given in the table.X will always play strategy

A)X₁.
B)X₂.
C)Y₁.
D)Y₂.

Question 41

Vanderbilt's offensive coordinator can choose to run, pass or use one of their vaunted trick plays for each play they run.The defensive coordinator for Texas Tech can choose to blitz, play their base defense or use a prevent defense each time Vanderbilt calls a play.The payoffs for each of these strategy combinations are neatly displayed in the table.Which play should Vanderbilt choose and which defense should Texas Tech run according to the information in the table?

Question 42

Given the following two-person game, what strategy should the players play?

Question 43

What is the value of the following two-person game?

Question 44

The student chapter of APICS and the student chapter of the HR Society both plan to hold their election of officers on the same night at the end of the semester.They have three ways to get the word out and are limited to only one channel each by the administration of Luddite University.The value of each decision is shown in the table.Which method should each group use and what is the value of this game?

Question 45

Table M4-2
Vanderbilt's offensive coordinator can choose to run, pass or use one of their vaunted trick plays for each play they run.The defensive coordinator for Texas Tech can choose to blitz, play their base defense or use a prevent defense each time Vanderbilt calls a play.The payoffs for each of these strategy combinations are neatly displayed in the table.

Which play should Vanderbilt choose according to the information in Table M4-2?

A)Run
B)Pass
C)Trick Play
D)Blitz

Question 46

Explain the principle of dominance as used in game theory.

Question 47

The cornerstone of modern game theory includes the concepts developed by this person.

Question 48

What is the value of the following two-person game?

Question 49

Table M4-1
Adam and Eve each face three doors and must make a selection with payoffs as shown in the table.

Which door should Adam choose?

A)Door 1
B)Door 2
C)Door 3
D)He should not choose a door.

Question 50

List at least two game theory applications.

Question 51

Table M4-1
Adam and Eve each face three doors and must make a selection with payoffs as shown in the table.

Which door should Eve choose?

A)Door 1
B)Door 2
C)Door 3
D)She should not choose a door.

Question 52

What is meant by the value of a mixed strategy game?

Question 53

Given the following two-person game, what strategy should the players play?

Question 54

Describe a two-person zero sum game.

Question 55

Given the following two-person game, what strategy should the players play?

Question 56

Given the following two-person game, what strategy should the players play?

Question 57

Table M4-2
Vanderbilt's offensive coordinator can choose to run, pass or use one of their vaunted trick plays for each play they run.The defensive coordinator for Texas Tech can choose to blitz, play their base defense or use a prevent defense each time Vanderbilt calls a play.The payoffs for each of these strategy combinations are neatly displayed in the table.

Which defense should Texas Tech choose according to the information in Table M4-2?

A)Blitz
B)Base
C)Prevent
D)Trick Play

Question 58

Adam and Eve each face three doors and must make a selection with payoffs as shown in the table.What is the value of the game and which doors should Adam and Eve choose?

Question 59

What is meant by a mixed strategy game?