Quiz 4 Flashcards
One-way Analysis of Variance:
all of these
ANOVA assumptions include:
all of these
The F-Distribution is:
all of these
Chi-Square distribution is:
none of these
Decision Theory is:
all of these
Seven steps of decision-making include:
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
Decision making under certainty is:
a decision-making environment in which the future outcomes or states of nature are known
Decision-making under risk is:
a decision-making environment in which several outcomes may occur as a result of decision or alternative
the probabilities of these outcomes are known
Decision-making under uncertainty is:
a decision-making environment in which several outcomes occur
the probabilities of the outcomes are not known
Criterion of Realism:
all of these
LaPlace is:
all of these
Minimax regret is:
all of these
Decision
Tree:
is a graphical representation of information
is built from the left and them solved from the right
Expected Monetary Value:
is the weighted sum of possible payoff for EACH alternatives
Expected Value of Perfect Information:
place an upper bound on what to pay for information
is the expected value with perfect information minus the maximum EMV
What are the steps in the Decision Tree Analysis
all of these
Conditional Value of Payoff is a consequence that occurs as a result of a particular alternative and state of nature:
True
In a decision tree, a decision node is a point where the best (the highest EMV) from the available alternatives is chosen
false
The shape of a person’s utility curve depends on many factors:
true
Alternatives is a course of action or a strategy that must be chosen by a decision-maker:
false
Risk-seeker is a person for whom taking a greater risk with a higher potential return has higher utility:
true
Risk-avoider is a person who gets less utility from a greater risk and higher potential return:
true
Utility theory is a theory that allows the decision-maker to incorporate their risk preference and other factors into the decision-making process:
true
Sensitivity analysis investigates how your decisions might change with different input data:
true
The prisoners’ dilemma describes a situation where, according to game theory, two players acting selfishly will ultimately result in a suboptimal choice for both.
true
