WorksheetsDecision Making Techniques
Total questions: 5
Worksheet time: 4mins
Name
Class
Date
1.
In decision tree analysis, what does a chance node represent?
a)
An uncertain event
b)
A decision to be made
c)
A cost-benefit comparison
2.
In decision tree analysis, how is the expected value of a decision calculated?
a)
By summing all costs
b)
By multiplying each outcome by its probability and summing
c)
By averaging all outcomes
3.
Why might a decision maker use EVPI (Expected Value of Perfect Information) in project planning?
a)
To eliminate uncertainty
b)
To assess the value of additional information
c)
To reduce costs
4.
In a decision tree, what does a decision node typically look like?
a)
A circle
b)
A square
c)
A hexagon
5.
What does a high BCR suggest about a project?
a)
It has low risk
b)
It is not feasible
c)
It offers high returns relative to cost
100 %
