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S-Self Quiz from CD
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1

States of nature are alternatives available to a decision maker.
A)True
B)False
2

EVPI is the expected value of the regret for the optimal decision under risk.
A)True
B)False
3

A decision tree branches out all of the possible decisions and all of the possible events.
A)True
B)False
4

An example of maximax decision making is when people buy lottery tickets hoping for a very big payoff.
A)True
B)False
5

Which one of the following steps is often the most crucial in the decision-making process?
A)identifying the problem.
B)Specifying objectives
C)Developing alternatives
D)Analyzing alternatives
E)Selecting the best alternative
6

Which one of the following would not generally be given as a reason for poor decisions?
A)Unforeseeable circumstances
B)Bounded rationality
C)Suboptimization
D)Mistakes in the decision process
E)All are reasons
7

Determining the average payoff for each alternative and choosing the alternative with the highest average is the approach called:
A)minimin
B)maximin
C)maximax
D)minimax regret
E)Laplace
8

If the minimum expected regret is computed, it indicates to a decision-maker the:
A)expected value of perfect information
B)expected payoff under certainty
C)expected monetary value
D)expected payoff under risk
E)none of the above





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