In decision theory-probabilities are associated with

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1. In decision theory, probabilities are associated with

a. payoffs. b. alternatives. c. states of nature. d. none of the above

2. The minimum expected opportunity loss

a. is equal to the highest expected payoff. b. is greater than the expected value with perfect information. c. is equal to the expected value of perfect information. d. is computed when finding the minimax regret decision

3. The EVSI

a. is found by subtracting the EMV without sample information from the EMV with sample information. b. is always equal to the expected value of perfect information. c. equals the EMV with sample information assuming no cost for the information minus the EMV without sample information. d. is usually negative.

4. The efficiency of sample information

a. is the EVSI/(maximum EMV without SI) expressed as a percentage. b. is the EVPI/EVSI expressed as a percentage. c. would be 100% if the sample information were perfect. d. is computed using only the EVPI and the maximum EMV.

5. Which of the following is a decision-making criterion that is used for decision making under risk?

a. expected monetary value criterion b. Hurwicz criterion (criterion of realism) c. optimistic (maximax) criterion d. equally likely criterion

Reference no: EM132269447

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