Decision Theory

2. ------ table is also known as profit table

• payoff

• loss

• cost

• min

3. -------is also known as Opportunity loss table.

• Regret table

• Profit table

• cost table

• min table

4. All possible outcomes that must be considered in the decision are ------

• action

• events

• profit

• loss

5. Decision maker has control over these actions,.

• TRUE

• FALSE

7..-------- criterion, is known as the criterion of optimism.

• hurwicz criteria

• maximin criteria

• maximax criteria

• minimax criteria

8. -----criterion, also known as the criterion of pessimism.

• hurwicz criteria

• maximin criteria

• maximax criteria

• minimax criteria

10..------- criteria assumes equal probability of each event

• hurwicz criteria

• maximin criteria

• maximax criteria

• laplace criteria

11.. In -------- the conditional value of each event in the pay-off table is multiplied by its probability and the product is summed up.

• EMV

• EVPI

• EPPS

• EOL

12.. The difference between the greater payoff and actual payoff is known as ---------

• EMV

• EVPI

• EPPS

• EOL

14.. ------------ is a managerial tool that presents all the decision alternatives and outcomes in a flowchart type of diagram.

• DECISION TABLE

• DECISION ROLL

• DECISION TREE

• ALL OF ABOVE