Managerial Decision Modeling w/ Spreadsheets, 3e (Balakrishnan/Render/Stair) Part 8 Decision Analysis

8. 1 Phase Questions

1) Determining the best payoff for every alternative and choosing the alternate with the " best of the best" is the approach named: A) maximax

B) maximin

C) Laplace

D) minimax repent

E) anticipated monetary value

Solution: A

Webpage Ref: 323

Topic: Making decisions Under Concern

Difficulty: Modest

2) Identifying the worst payoff for every single alternative and choosing the option with the " best of the worst" is definitely the approach named: A) maximax

B) maximin

C) Laplace

D) minimax regret

E) expected monetary value

Answer: W

Page Ref: 323

Topic: Decision Making Beneath Uncertainty

Difficulty: Moderate

3) The approach that is used intended for analyzing decision trees is named: A) maximax

B) maximin

C) Laplace

D) minimax regret

E) expected monetary value

Answer: E

Web page Ref: 332

Topic: Decision Trees

Difficulty: Easy

4) Determining the average payoff for every single alternative and choosing the one particular with the ideal payoff may be the approach called: A) maximax

B) maximin

C) Laplace

D) minimax regret

E) expected value

Answer: C

Page Ref: 324

Subject: Decision Making Under Uncertainty

Difficulty: Moderate

Use this information to answer the following questions.

Consider the subsequent payoff desk that signifies the profits gained for each alternate (A, M, and C) under the claims of mother nature S1, S2, and S3.

S1S2S3

A$60$145$120 B$75$125$110

C$95$85$130

5) Refer to the payoff desk. Using the maximax criterion, what would be the top expected payoff? A) $145

B) $124

C) $120

D) $110

E) $22.99

Answer: A

Page Ref: 323

Theme: Decision Making Under Uncertainty

Difficulty: Moderate

AACSB: Analytic Abilities

6) Label the payoff table. Making use of the maximin criterion, what could be the highest predicted payoff? A) $145

B) $125

C) $85

D) $75

E) $60

Response: C

Page Ref: 323

Topic: Making decisions Under Doubt

Difficulty: Average

AACSB: A fortiori Skills

7) Refer to the payoff desk. Using the Laplace criterion, what would be the maximum expected benefit? A) $103. 3

B) $108. three or more

C) $120

D) $125

E) $145

Answer: M

Page Ref: 324

Subject: Decision Making Beneath Uncertainty

Difficulty: Moderate

AACSB: Analytic Skills

8) Consider the benefit table. Using the criterion of realism and an alpha dog value of 0. 7, what is the highest anticipated payoff? A) $127

B) $119. 5

C) $98. 5

D) $116

E) $145

Answer: B

Site Ref: 324

Topic: Decision Making Under Concern

Difficulty: Moderate

AACSB: Discursive Skills

9) Refer to the payoff table. Using the minimax regret qualifying criterion, which alternative would you select? A) A

B) N

C) C

D) A or B

E) N or C

Answer: N

Page Ref: 325

Subject: Decision Making Under Uncertainty

Difficulty: Moderate

AACSB: Analytic Skills

10) Refer to the benefit table. Making use of the expected monetary value (EMV) qualifying criterion, what is the highest attainable predicted profit? Suppose P(S1) = 0. five and P(S2) = zero. 25. A) $101. twenty-five

B) $103. 33

C) $108. 33

D) $125

E) $145

Answer: A

Page Ref: 327

Theme: Decision Making Under Risk

Problems: Moderate

AACSB: Analytic Expertise

11) Consider the payoff table. Precisely what is the predicted value below certainty? Presume P(S1) = 0. five and P(S2) = 0. 25. A) $101. twenty-five

B) $103. 33

C) $108. thirty-three

D) $116. 25

E) $136. twenty-five

Answer: D

Page Ref: 328

Theme: Decision Making Beneath Risk

Difficulty: Moderate

AACSB: Analytic Abilities

12) Label the benefit table. What is the expected value of perfect data (EVPI)? Presume P(S1) sama dengan 0. a few and P(S2) = zero. 25. A) $0

B) $11. twenty-five

C) $15

D) $20

E) 35 dollars

Answer: C

Page Ref: 329

Topic: Decision Making Below Risk

Problems: Moderate

13) What is the correct equation pertaining to computing the expected value of ideal information (EVPI)? A) EVPI = anticipated value below risk for greatest alternative - expected worth under...