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WorksheetsDecision Analysis
Total questions: 21
Worksheet time: 28mins
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) .
The (a) results in the maximum of the maximum payoffs.
The (a) results in the maximum of the minimum payoff.
(a) is the difference between the payoff from the best decision and all other decision payoffs.
The (a) criterion minimizes the maximum regret.
The (a) is a compromise between the maximax and maximin criteria.
The (a) , is a measure of the decision maker’s optimism.
The (a) , or (b) , criterion multiplies the decision payoff for each state of nature by an equal weight.
Expected value is computed by (a) each decision outcome under each (b) by the probability of its occurrence.
__________ is the expected value of the regret for each decision.
EOL
EVPI
EOVI
ELO
The expected value and expected opportunity loss criteria result in the same decision.
True
False
The _______ is the maximum amount a decision maker would pay for additional information.
EOL
EVPI
EOVI
ELO
EVPI equals the expected value, given perfect information, minus the expected value without perfect information.
True
False
The expected value of perfect information equals the expected opportunity loss for the best decision.
True
False
Determine the parts of the payoff table
Determine the best decision by using the following decision criteria:
Maximax (a)
Determine the best decision by using the following decision criteria:
Maximin (a)
Determine the best decision by using the following decision criteria:
Minimax regret (a)
Determine the best decision by using the following decision criteria:
Hurwicz ( α = .3) (a)
Determine the best decision by using the following decision criteria:
Equal likelihood (a)
