Hw5A

HW 5a

Multiple Choice
Identify the choice that best completes the statement or answers the question.

__B__ 1. Although modeling provides valuable insight to decision makers, decision making remains a difficult task. Which of the following is not a primary cause for this difficulty discussed in the Decision Analysis chapter? a. | Uncertainty regarding the future. | b. | Models provide decisions for the decision maker. | c. | Conflicting values. | d. | Conflicting objectives. |

__A__ 2. Which of the following is a goal of decision analysis? a. | Help individuals make good decisions. | b. | Ensure decisions lead to good outcomes. | c. | Avoiding decisions leading to bad outcomes. | d. | Reduce the role of luck in a decision. |

__A__ 3. Which of the following summarizes the final outcome for each decision alternative? a. | payoff matrix | b. | outcome matrix | c. | yield matrix | d. | performance matrix |

__A__ 4. Which decision rule optimistically assumes that nature will always be "on our side" regardless of what decision we make? a. | maximax decision rule. | b. | maximin decision rule. | c. | minimax regret decision rule. | d. | minimin decision rule. |

__B__ 5. Which decision rule pessimistically assumes that nature will always be "against us" regardless of what decision we make? a. | maximax decision rule. | b. | maximin decision rule. | c. | minimax regret decision rule. | d. | minimin decision rule. |

__B__ 6. The decision rule which determines the minimum payoff for each alternative and then selects the alternative associated with the largest minimum payoff is the a. | maximax decision rule. | b. | maximin decision rule. | c. | minimax regret decision rule. | d. | minimin decision rule. |

__B__ 7. The category of decision rule that contains the maximax decision rule is the a. | optimistic category. | b. | non-probabilistic category. | c. | probabilistic category. |