Reference no: EM13970045
1) A company is considering producing some new Gameboy electronic games. Based on past records, management believes that there is a 70 percent chance that each of these will be successful, and a 30 percent chance of failure. Market research may be used to revise these probabilities. In the past, the successful products were predicted to be successful based on market research 90 percent of the time. However, for products that failed, the market research predicted these would be successes 20 percent of the time. If market research is performed for a new product, what is the probability that the product will be successful if the market research indicates a success?
A) 0.10
B) 0.90
C) 0.91
D) 0.63
E) 0.09
2) The following is an opportunity loss table.
What decision should be made based on the minimax regret criterion?
A) Alternative 1
B) Alternative 2
C) Alternative 3
D) State of Nature A
E) Does not matter
3) Dr. Mac, a surgeon, must decide what mode of treatment to use on Mr. Samuels. There are three modes of treatment: Mode A, B, and C; and three possible states of nature: 1. Treatment succeeds and patient leads a normal life, 2. Patient survives treatment but is permanently disabled, and 3. Patient fails to survive treatment. Dr. Mac has prepared the decision table below. What mode of treatment maximizes the expected value?
A) Mode A
B) Mode B
C) Mode C
D) All three treatments are equally desirable.
E) Normal Life
4) 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.
E) None of the above
5) Consider the following two-person game. The payoff for X is given in the table. X will always play strategy
Y1 Y2
X1 4 6
X2 1 -3
A) X1.
B) X2.
C) Y1.
D) Y2.
E) Not enough information given
6) 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?
Y1 (newspaper ads) Y2 (flyers)
X1 (newspaper ads) 52 37
X2 (flyers) 26 18
A) X1
B) X2
C) Y1
D) Y2
E) Not enough information given
7) Considering the following two-person game, what percentage of the time should X play strategy X2?
Y1 Y2
X1 6 3
X2 2 8
A) 1/3
B) 2/3
C) 4/9
D) 5/9
E) None of the above
8) Given the following two-person game, which strategy can be eliminated by use of dominance?
Y1 Y2
X1 13 9
X2 6 8
X3 12 14
A) X1
B) X2
C) X3
D) Y1
E) Y2
9) If computing a causal linear regression model of Y = a + bX and the resultant r2 is very near zero, then one would be able to conclude that
A) Y = a + bX is a good forecasting method.
B) Y = a + bX is not a good forecasting method.
C) a multiple linear regression model is a good forecasting method for the data.
D) a multiple linear regression model is not a good forecasting method for the data.
E) None of the above
10) The diagram below illustrates data with a
A) negative correlation coefficient.
B) zero correlation coefficient.
C) positive correlation coefficient.
D) correlation coefficient equal to +1.
E) None of the above
11) Which of the following statements provides the best guidance for model building?
A) If the value of r2 increases as more variables are added to the model, the variables should remain in the model, regardless of the magnitude of increase.
B) If the value of the adjusted r2 increases as more variables are added to the model, the variables should remain in the model.
C) If the value of r2 increases as more variables are added to the model, the variables should not remain in the model, regardless of the magnitude of the increase.
D) If the value of the adjusted r2 increases as more variables are added to the model, the variables should not remain in the model.
E) None of the statements provide accurate guidance.