IMS555 - Chapter 3

What is the concept of 'relation' in options and the use of '--n--u--m--b--e--r--' in representing options and alternatives?

• Ordinal

• Interval

• Utility

• Ratio

Which term is used to represent 'better than' in preference relations?

• >

• ~

• ≥

• ≡

What does the symbol '≥' represent in preference relations?

• Weak preference

• Transitivity

• Indifference

• Strict preference

What does the axiom of transitivity state in relation to preferences?

• If A ≡ B and B ≡ C, then A ≡ C

• If A > B and B > C, then A > C

• If A ~ B and B ~ C, then A ~ C

• If A ≥ B and B ≥ C, then A ≥ C

What is the purpose of assigning numerical values to alternatives in decision-making?

• To complicate the process

• To add randomness

• To make decisions easier

• To confuse decision makers

Which scale gives us more information than an ordinal scale in utility theory?

• Ratio

• Ordinal

• Interval

• Numerical

What does the maximization of expected utility strategy involve?

• Choosing the alternative with the best outcome

• Choosing the cheapest alternative

• Choosing randomly

• Choosing the worst alternative

What is the main difference between maximizing and satisficing in decision theory?

• Maximizing and satisficing are not related to decision-making

• Maximizing and satisficing are the same

• Maximizing aims for a satisfactory outcome, while satisficing aims for the best outcome

• Maximizing aims for the best outcome, while satisficing aims for a satisfactory outcome

What is the purpose of the axiom of order in preference theory?

• To introduce randomness

• To assume continuity in preferences

• To eliminate preferences

• To confuse decision makers

What does the symbol '≡' represent in preference relations?

• Transitivity

• Strict preference

• Weak preference

• Indifference