Criteria and states of nature in decision analysis

Assignment Help Basic Statistics

Reference no: EM1320885

Q1) Let following payoff matrix.

State of nature
Decision	1	2	3
A	50	75	35
B	40	50	60
C	40	35	30

Must a decision maker ever choose decision alternative C? Describe your answer.

2) Describe the meaning of alternatives, criteria and states of nature. How are they utilized in decision analysis?

3) Give a personal example of when and how you could have used decision analysis to help in making decision.

4) Researchers have claimed that average number of headaches per student in a semester of Statistics is 12. Statistics students believe average is higher. In sample of n = 16 students mean is 14 headaches with deviation of 1.5. Which of given represent null and alternative hypotheses essential to test the students' belief?

a) H0: μ = 12 vs. Ha: μ > 12

b) H0: μ = 12 vs. Ha: μ < 12

c) H0: μ = 12 vs. Ha: μ ≠ 12

d) H0: μ < 12 vs. Ha: μ = 12

Reference no: EM1320885

Questions Cloud

Point estimate for average sales : What would be your best point estimate for average Sales in weeks for which Newspaper advertising were $1 million? What would be an appropriate interval estimate for this?

Category of decision rule contain maximax decision rule : Category of decision rule which contains maximax decision rule is?

Interpret the confidence interval in a single sentence : Interpret the confidence interval in a single sentence

Value of r-square indicates the amounts of variation : The value of R-square indicates the amounts of variation in the dependent variable that is explained by the independent variable.

Criteria and states of nature in decision analysis : Describe the meaning of alternatives, criteria and states of nature. How are they utilized in decision analysis?

Concept of total compensation : Discuss the concept of total compensation, how compensation and benefit systems are used by organizations to attract and retain qualified, skilled employees.

Confidence interval for the expected value : How much variability will you have if you predict sales with this model?

Compute the p value for the test : Compute the p value for the test

Fair amount of buffering from short-term : Identify an organization (it may be a business, a not-for-profit, a government, a remote tribe, or even a whole economy) that you believe operates as a relatively closed system. (It doesn't have to be a perfectly closed system, just one with a fai..

User Account

All Pages