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.
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.
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.
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
