Decision Analysis

is an actual event that may occur in the future.

• state of nature

• payoff

• variable

Using a​ (a)   is a means of organizing a decision situation, including the payoffs from different decisions, given the various (b)   .​

• payoff table
• states of nature
• decision table
• decisions
• decision tree
• data

The ​ (a)   results in the maximum of the maximum payoffs.

• maximax criterion
• maximin criterion
• minimax regret
• Hurwicz
• equal likelihood

The ​ (a)   results in the maximum of the minimum payoff.

• maximin criterion
• minimax regret
• Hurwicz
• equal likelihood
• maximax criterion

_______ is the difference between the payoff from the best decision and all other decision payoffs.

The ​ (a)   criterion minimizes the maximum regret.

• minimax regret
• Hurwicz
• equal likelihood
• maximax criterion
• maximax regret
• maximin regret

The ​ (a)   is a compromise between the maximax and maximin criteria.

• Hurwicz criterion
• equal likelihood
• maximax criterion
• maximax regret
• maximin regret

The ​ (a)   , is a measure of the decision maker’s optimism.

• coefficient of optimism
• coefficient of optimistic
• coefficient of positivity

The ​ (a)   , or ​ (b)   , criterion multiplies the decision payoff for each state of nature by an equal weight.

• equal likelihood
• LaPlace
• Hurwicz
• maximax
• maximin

Expected value is computed by ​ (a)   each decision outcome under each ​ (b)   by the probability of its occurrence.

• multiplying
• state of nature
• dividing
• adding
• outcome
• decision