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S-True or False
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Please answer the following questions.



1

The first step in decision analysis is to develop a list of alternatives.
A)True
B)False
2

Certainty is a situation that exists when it is known which state of nature will occur.
A)True
B)False
3

The expected value of perfect information (EVPI) is the expected value of the difference between the payoff of a decision under certainty and the optimal decision under risk.
A)True
B)False
4

EVPI is the expected value of the regret for the optimal decision under risk.
A)True
B)False
5

Minimax opportunity loss and minimax regret are actually the same thing.
A)True
B)False
6

With both risk and uncertainty the probabilities for events are known.
A)True
B)False
7

One cause of poor decisions is bounded rationality.
A)True
B)False
8

The expected value of the payoff for the optimal decision under risk is the best payoff that can be had without acquiring additional information.
A)True
B)False
9

Maximin means to choose the alternative with the best of the worst possible payoffs.
A)True
B)False







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