Reference no: EM133339120

1. (TRUE or FALSE) Optimists treat problems as maximization / profit while pessimists treat problems as minimization / cost when using Decision Tables.

2. (TRUE or FALSE) In Decision-Making Under Risk, there are several possible outcomes for each alternative, and the decision-make does not know the probabilities of the various outcomes.

3. (TRUE or FALSE) The decision maker can control states of nature.

4. (TRUE or FALSE) The several criteria (maximax, maximin, equally likely, minimax regret) used for decision making under uncertainty may lead to the choice of different alternatives.

5. (TRUE or FALSE) The difference in Decision Making Under Risk and decision making under uncertainty is that under risk, we think we know the probabilities of the states of nature, while under uncertainty we do not know the probabilities of the states of nature.

6. (TRUE or FALSE) EVPI (Expected Value of Perfect Information) can never be negative.

7. (TRUE or FALSE) All decisions that result in a favorable outcome are considered to be good decisions.

8. (TRUE or FALSE) Expected Monetary Value (EMV) is the average or expected monetary outcome of a decision if it can be repeated a large number of times.

9. Which of the following is not a characteristic of a good decision?

a) based on logic

b) considers all available data

c) considers all possible alternatives

d) employs appropriate quantitative techniques

e) always results in a favorable outcome

10. The three decision-making environments are decision making under ________

a) utility, risk, and certainty

b) utility, risk, and uncertainty

c) utility, certainty, and uncertainty

d) utility, equity, and certainty

e) risk, certainty, and uncertainty