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    Rawan Hamamrah
    The document contains 5 multiple choice questions related to decision making under uncertainty based on 5 payoff tables. Question 1 asks which alternative an optimist would choose from the first payoff table. Question 2 asks which alternative would be chosen using the regret criterion from the same table. Question 3 asks the expected value of perfect information calculation based on a third payoff table. Question 4 asks the minimum expected opportunity loss value calculation from the same third table. Question 5 asks the range of probability values for which alternative 1 would be chosen using sensitivity analysis on a fifth and final payoff table.

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    The document contains 5 multiple choice questions related to decision making under uncertainty based on 5 payoff tables. Question 1 asks which alternative an optimist would choose from the first payoff table. Question 2 asks which alternative would be chosen using the regret criterion from the same table. Question 3 asks the expected value of perfect information calculation based on a third payoff table. Question 4 asks the minimum expected opportunity loss value calculation from the same third table. Question 5 asks the range of probability values for which alternative 1 would be chosen using sensitivity analysis on a fifth and final payoff table.

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    The document contains 5 multiple choice questions related to decision making under uncertainty based on 5 payoff tables. Question 1 asks which alternative an optimist would choose from the first payoff table. Question 2 asks which alternative would be chosen using the regret criterion from the same table. Question 3 asks the expected value of perfect information calculation based on a third payoff table. Question 4 asks the minimum expected opportunity loss value calculation from the same third table. Question 5 asks the range of probability values for which alternative 1 would be chosen using sensitivity analysis on a fifth and final payoff table.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    10 views3 pages

    Or

    Uploaded by

    Rawan Hamamrah
    The document contains 5 multiple choice questions related to decision making under uncertainty based on 5 payoff tables. Question 1 asks which alternative an optimist would choose from the first payoff table. Question 2 asks which alternative would be chosen using the regret criterion from the same table. Question 3 asks the expected value of perfect information calculation based on a third payoff table. Question 4 asks the minimum expected opportunity loss value calculation from the same third table. Question 5 asks the range of probability values for which alternative 1 would be chosen using sensitivity analysis on a fifth and final payoff table.

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    Based on the following payoff table,

    States of Nature
    Alternatives A B C
    Alternative 1 300 200 100
    Alternative 2 280 300 280
    Alternative 3 240 350 240
    Do Nothing 0 0 0

    1) What decision would an optimist make?


    A) Alternative 1
    B) Alternative 2
    C) Alternative 3
    D) Do Nothing
    E) Alternatives 1 or 2

    Based on the following payoff table,

    States of Nature
    Alternatives A B C
    Alternative 1 300 200 100
    Alternative 2 280 300 280
    Alternative 3 240 350 240
    Do Nothing 0 0 0

    2 Using the regret criterion, which alternative would be chosen?


    A) Alternative 1
    B) Alternative 2
    C) Alternative 3
    D) Do Nothing
    E) Alternatives 1 or 2

    Based on the payoff table below,

    States of Nature
    Alternatives A B C
    Alternative 1 600 400 100-
    Alternative 2 500 410 50-
    Alternative 3 550 420 150-
    probabilities 0.40 0.30 0.30

    3) Expected value of perfect information (EVPI) will be:


    A) 51
    B) 21
    C) 43
    D) 351
    E) None of the above

    Based on the payoff table below,

    States of Nature
    Alternatives A B C
    Alternative 1 600 400 100-
    Alternative 2 500 410 50-
    Alternative 3 550 420 150-
    probabilities 0.40 0.30 0.30

    4) Minimum expected opportunity loss value will be:


    A) 43
    B) 51
    C) 50
    D) 21
    E) None of the above

    Based on the payoff table below,

    States of Nature
    Alternatives Good Poor
    economy economy
    Alternative 1 150,000 60,000-
    Alternative 2 80,000 10,000-
    Do nothing 0 0
    Probability p

    5) Using sensitivity analysis, the range of P values for alternative 1 will be:
    A) greater than 0.416
    B) greater than 0.385
    C) Less than 0.416
    D) Less than 0.385
    E) None of the above

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