Quiz 4

Question 1

One-way Analysis of Variance:

Answer 1

all of these

Question 2

ANOVA assumptions include:

Answer 2

all of these

Question 3

The F-Distribution is:

Answer 3

all of these

Question 4

Chi-Square distribution is:

Answer 4

none of these

Question 5

Decision Theory is:

Answer 5

all of these

Question 6

Seven steps of decision-making include:

Answer 6

Clearly define the problem at hand
List the possible alternatives
identify the possible outcomes or states or nature
list the payoff or profit of each combination of alternatives and outcomes
select one of the mathematical decision theory models
apply the model
make a decision
all of these

Question 7

Decision making under certainty is:

Answer 7

a decision-making environment in which the future outcomes or states of nature are known

Question 8

Decision-making under risk is:

Answer 8

a decision-making environment in which several outcomes may occur as a result of decision or alternative

the probabilities of these outcomes are known

Question 9

Decision-making under uncertainty is:

Answer 9

a decision-making environment in which several outcomes occur

the probabilities of the outcomes are not known

Question 10

Criterion of Realism:

Answer 10

all of these

Question 11

LaPlace is:

Answer 11

all of these

Question 12

Minimax regret is:

Answer 12

all of these

Question 13

Decision
Tree:

Answer 13

is a graphical representation of information

is built from the left and them solved from the right

Question 14

Expected Monetary Value:

Answer 14

is the weighted sum of possible payoff for EACH alternatives

Question 15

Expected Value of Perfect Information:

Answer 15

place an upper bound on what to pay for information

is the expected value with perfect information minus the maximum EMV

Question 16

What are the steps in the Decision Tree Analysis

Answer 16

all of these

Question 17

Conditional Value of Payoff is a consequence that occurs as a result of a particular alternative and state of nature:

Answer 17

True

Question 18

In a decision tree, a decision node is a point where the best (the highest EMV) from the available alternatives is chosen

Answer 18

false

Question 19

The shape of a person’s utility curve depends on many factors:

Answer 19

true

Question 20

Alternatives is a course of action or a strategy that must be chosen by a decision-maker:

Answer 20

false

Question 21

Risk-seeker is a person for whom taking a greater risk with a higher potential return has higher utility:

Answer 21

true

Question 22

Risk-avoider is a person who gets less utility from a greater risk and higher potential return:

Answer 22

true

Question 23

Utility theory is a theory that allows the decision-maker to incorporate their risk preference and other factors into the decision-making process:

Answer 23

true

Question 24

Sensitivity analysis investigates how your decisions might change with different input data:

Answer 24

true

Question 25

The prisoners’ dilemma describes a situation where, according to game theory, two players acting selfishly will ultimately result in a suboptimal choice for both.

Answer 25

true