Week 2

The three types of decision-making environments are

• Utility, Risk, and Certainty

• Utility, Certainty, and Uncertainty

• Utility, Equity, and Certainty

• Risk, Certainty, and Uncertainty

Which of the following is not considered a criterion for decision making under uncertainty?

• Optimistic

• Pessimistic

• Equally Likely

• Random Selection

A pessimistic decision making criterion is sometimes called

• The maximax criterion

• The equally likely criterion

• The maximin criterion

• Decision making under certainty

The most that a person should pay for perfect information is

• The EVPI

• The maximum EMV minus the minimum EMV

• The maximum EOL

• The maximum EMV

Bayes’ Theorem is used to revise probabilities. The revised probabilities are called

• Prior probabilities

• Sample probabilities

• Survey probabilities

• Posterior probabilities