MAGSCI

Question 1

The limitations on decision making caused by costs, human abilities, time, technology, and availability of information

Answer 1

Bounded Rationality

Question 2

The result of different departments each attempting to reach a solution that is optimum for that department

Answer 2

Suboptimization

Question 3

means that relevant parameters such as costs, capacity, and demand have known values

Answer 3

Certainly

Question 4

means that it is impossible to
assess the likelihood of various possible future event

Answer 4

Uncertainty

Question 5

means that certain parameters have probabilistic outcomes

Answer 5

Risk

Question 6

Table showing the expected payoffs for each alternative in every possible state of nature.

Answer 6

Payoff Table

Question 7

the set of all possible outcomes of an experiment

Answer 7

sample space

Question 8

subset of the sample space

Answer 8

event

Question 9

events with no elements in common (disjoint events)

Answer 9

mutually exclusive events

Question 10

loosely defined as a measure of how
likely a certain event will occur.

Answer 10

Probability