Decision analysis del 1

Question 1

Describe a decision problem

Answer 1

A decision problem is characterized by decision alternatives, statues of nature and resulting payoffs.

Question 2

What are the decision alternatives?

Answer 2

The decision alternatives are the different possible strategies the decision maker can employ

Question 3

What are the states of nature?

Answer 3

The states of nature refer to future events, not under control of the decision maker, which may occur.

Question 4

How should decision alternatives and states of nature be defined?

Answer 4

Should be defined so that they are mutually exclusive and collectively exhaustive

(båda kan inte hända samtidigt, men en av dom måste hända)

Question 5

What are payoff tables?

Answer 5

Payoff tables is a table of payoffs for all combinations of decision alternatives and states of nature.

Question 6

What is a influence program?

Answer 6

graphical device showing the relationships among the decisions, the chance events and the consequences

Question 7

Decribe squares or rectangles in influence diagram

Answer 7

decision nodes (shows a decision to be made)

Question 8

Describe circles or ovals in influence diagram

Answer 8

chance nodes (P of certain results)

Question 9

Describe diamonds in influence diagram

Answer 9

consequence nodes

Question 10

What is a decision tree?

Answer 10

chronological representation of the decision problem

Question 11

Describe round nodes and branches in decision tree

Answer 11

correspond to the states of nature

Question 12

Describe square nodes and branches in decision tree

Answer 12

correspond to the decision alternatives

Question 13

What is at the end of each limb of a tree?

Answer 13

payoffs attained from the series of branches making up that limb