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62) In decision making under ________, there several possible outcomes

Question : 62) In decision making under ________, there several possible outcomes : 1895266

62) In decision making under ________, there are several possible outcomes for each alternative, and the decision maker does not know the probabilities of the various outcomes.

A) risk

B) utility

C) certainty

D) probability

E) uncertainty

63) In decision making under ________, there are several possible outcomes for each alternative, and the decision maker knows the probability of occurrence of each outcome.

A) risk

B) utility

C) certainty

D) probability

E) uncertainty

64) The optimistic decision criterion is the criterion of ________.

A) maximax

B) maximin

C) realism

D) equally likely

E) minimax regret

65) The Hurwicz criterion is also called the criterion of ________.

A) regret

B) equality

C) optimism

D) realism

E) pessimism

66) The equally likely criterion is also called the ________ criterion.

A) Hurwicz

B) uncertainty

C) Laplace

D) LaFlore

E) Huchenmeizer

67) Decision trees are particularly useful when

A) perfect information is available.

B) formulating a conditional values table.

C) the opportunity loss table is available.

D) a sequence of decisions must be made.

E) all possible outcomes and alternatives are not known.

68) The expected value of sample information (EVSI) can be used to

A) establish a maximum amount to spend on additional information.

B) calculate conditional probabilities.

C) establish risk avoidance.

D) provide points on a utility curve.

E) None of the above

69) A market research survey is available for $10,000.  Using a decision tree analysis, it is found that the expected monetary value with no survey is $62,000.  If the expected value of sample information is -$7,000, what is the expected monetary value with the survey?

A)  $45,000

B)  $62,000

C) -$17,000

D)  $55,000

E) None of the above

70) A market research survey is available for $10,000.  Using a decision tree analysis, it is found that the expected monetary value with the survey is $75,000.  The expected monetary value with no survey is $62,000.  What is the expected value of sample information?

A) -$7,000

B) $3,000

C) $7,000

D) $13,000

E) None of the above

71) In the construction of decision trees, which of the following shapes represents a state of nature node?

A) square

B) circle

C) diamond

D) triangle

E) None of the above

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