Decision theory-minimax and maximax principle

Assignment Help Basic Statistics

Reference no: EM1317620

1. Decision making under risk is the same as decision making under uncertainty because in both the probabilities are unknown.

a. True

b. False

2. The Criterion of Realism or the Hurwicz criterion uses a coefficient of realism, or alpha that measures the optimism of the decision maker; an alpha of 0.0 is optimistic.

a. True

b. False

3. Maximax, maximin, and minimax are all methods used in forecasting to determine the best forecasting solution.

a. True

b. False

4. Moving averages may be either weighted differently or weighted equally; unequal weights imply that the information for all times periods is of no relevance in the forecast.

a. True

b. False

5. In examining inventory cost factors, carrying cost factors are very important and ordering cost factors are largely irrelevant.

a. True

b. False

Reference no: EM1317620

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