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Question: An approach to decision making under uncertainty

An approach to decision making under uncertainty that is based on a weighted combination of the maximum and the minimum payoffs from each alternative is called the _____________. a) Maximin criterion b) Maximax criterion c) Hurwicz criterion d) Minimax regret strategy e) Weighted regret criterion 16. Consider the decision table given below:
An approach to decision making under uncertainty that is based on a weighted combination of the maximum and the minimum payoffs from each alternative is called the _____________. a) Maximin criterion b) Maximax criterion c) Hurwicz criterion d) Minimax regret strategy e) Weighted regret criterion 16. Consider the decision table given below: What decisions would an optimist and pessimist make? a) d1 and d3 b) d1 and d2 c) d2 and d3 d) d3 and d2 17. Consider the decision table given below: Suppose we are more optimistic than pessimistic and select ( = 0.8 for the weight of optimism. According to Hurwicz criterion, the payoff of the decision maker is_____________. a) 190 b) 138 c) 360 d) 480 18. In decision making under uncertainty, a strategy that is based on lost opportunity is called the _____________. a) Maximin regret strategy b) Maximax criterion c) Hurwicz criterion d) Minimax regret strategy e) Maximax regret strategy 19. Consider the problem faced by a decision maker who must choose one of two investment opportunities (I1 and I2) in a foreign country. The rewards to these alternatives are uncertain and depend on the outcome of the country’s national election. I1 will make a profit of $100 million if the political party A comes to power and will make a loss of $20 million if the political party B comes to power. I2 will make a profit of $200 million if the political party A comes to power and will make a loss of $80 million if the political party B comes to power. Suppose the decision maker is able to assign probabilities to the outcomes of the election and determines that party A will win the election with a probability 0.6. If the decision maker chooses the investment I1, his expected reward (in million $) will be _____________. a) 200 b) 52 c) 20 d) 100 e) −20 20. Consider the problem faced by a decision maker who must choose one of two investment opportunities (I1 and I2) in a foreign country. The rewards to these alternatives are uncertain and depend on the outcome of the country’s national election. I1 will make a profit of $100 million if the political party A comes to power and will make a loss of $20 million if the political party B comes to power. I2 will make a profit of $200 million if the political party A comes to power and will make a loss of $80 million if the political party B comes to power. Suppose the decision maker is able to assign probabilities to the outcomes of the election and determines that party A will win the election with a probability 0.6. If the decision maker chooses the investment I2, his expected reward (in million $) will be _____________. a) 200 b) 52 c) 20 d) 100 e) 88 21. Imagine a game in which there is a ten percent chance of winning. Winning brings a reward of $100 and losing brings nothing. If a decision maker is willing to pay $20 to play this game, the decision maker is _______________. a) A risk-avoider b) Is indifferent to the risk c) A risk-taker d) Willing to pay the expected value e) Willing to pay less than the expected value 22. Consider the following decision table in which x, y, and z are decision alternatives and A and B are the two possible states of nature, with probabilities 0.30 and 0.70. The expected value for decision y is ___________. a) 24 b) 55 c) 209 d) 369 e) 290 23. Consider the following decision table. The expected value of perfect information is __________. a) 55 b) 63 c) 185 d) 353 e) 500 24. A person has a 50-50 chance at winning $100,000 or $0. The person is offered $25,000 to quit the game, and he refuses to quit the game. He is offered $50,000 to quit the game, and he refuses. Finally, when he is offered $70,000 to quit the game, he takes the money. This person is _____________. a) A risk taker b) A risk avoider c) An EMVer d) A gambler e) A profit mongerer
What decisions would an optimist and pessimist make? a) d1 and d3 b) d1 and d2 c) d2 and d3 d) d3 and d2 17. Consider the decision table given below:
An approach to decision making under uncertainty that is based on a weighted combination of the maximum and the minimum payoffs from each alternative is called the _____________. a) Maximin criterion b) Maximax criterion c) Hurwicz criterion d) Minimax regret strategy e) Weighted regret criterion 16. Consider the decision table given below: What decisions would an optimist and pessimist make? a) d1 and d3 b) d1 and d2 c) d2 and d3 d) d3 and d2 17. Consider the decision table given below: Suppose we are more optimistic than pessimistic and select ( = 0.8 for the weight of optimism. According to Hurwicz criterion, the payoff of the decision maker is_____________. a) 190 b) 138 c) 360 d) 480 18. In decision making under uncertainty, a strategy that is based on lost opportunity is called the _____________. a) Maximin regret strategy b) Maximax criterion c) Hurwicz criterion d) Minimax regret strategy e) Maximax regret strategy 19. Consider the problem faced by a decision maker who must choose one of two investment opportunities (I1 and I2) in a foreign country. The rewards to these alternatives are uncertain and depend on the outcome of the country’s national election. I1 will make a profit of $100 million if the political party A comes to power and will make a loss of $20 million if the political party B comes to power. I2 will make a profit of $200 million if the political party A comes to power and will make a loss of $80 million if the political party B comes to power. Suppose the decision maker is able to assign probabilities to the outcomes of the election and determines that party A will win the election with a probability 0.6. If the decision maker chooses the investment I1, his expected reward (in million $) will be _____________. a) 200 b) 52 c) 20 d) 100 e) −20 20. Consider the problem faced by a decision maker who must choose one of two investment opportunities (I1 and I2) in a foreign country. The rewards to these alternatives are uncertain and depend on the outcome of the country’s national election. I1 will make a profit of $100 million if the political party A comes to power and will make a loss of $20 million if the political party B comes to power. I2 will make a profit of $200 million if the political party A comes to power and will make a loss of $80 million if the political party B comes to power. Suppose the decision maker is able to assign probabilities to the outcomes of the election and determines that party A will win the election with a probability 0.6. If the decision maker chooses the investment I2, his expected reward (in million $) will be _____________. a) 200 b) 52 c) 20 d) 100 e) 88 21. Imagine a game in which there is a ten percent chance of winning. Winning brings a reward of $100 and losing brings nothing. If a decision maker is willing to pay $20 to play this game, the decision maker is _______________. a) A risk-avoider b) Is indifferent to the risk c) A risk-taker d) Willing to pay the expected value e) Willing to pay less than the expected value 22. Consider the following decision table in which x, y, and z are decision alternatives and A and B are the two possible states of nature, with probabilities 0.30 and 0.70. The expected value for decision y is ___________. a) 24 b) 55 c) 209 d) 369 e) 290 23. Consider the following decision table. The expected value of perfect information is __________. a) 55 b) 63 c) 185 d) 353 e) 500 24. A person has a 50-50 chance at winning $100,000 or $0. The person is offered $25,000 to quit the game, and he refuses to quit the game. He is offered $50,000 to quit the game, and he refuses. Finally, when he is offered $70,000 to quit the game, he takes the money. This person is _____________. a) A risk taker b) A risk avoider c) An EMVer d) A gambler e) A profit mongerer
Suppose we are more optimistic than pessimistic and select ( = 0.8 for the weight of optimism. According to Hurwicz criterion, the payoff of the decision maker is_____________. a) 190 b) 138 c) 360 d) 480 18. In decision making under uncertainty, a strategy that is based on lost opportunity is called the _____________. a) Maximin regret strategy b) Maximax criterion c) Hurwicz criterion d) Minimax regret strategy e) Maximax regret strategy 19. Consider the problem faced by a decision maker who must choose one of two investment opportunities (I1 and I2) in a foreign country. The rewards to these alternatives are uncertain and depend on the outcome of the country’s national election. I1 will make a profit of $100 million if the political party A comes to power and will make a loss of $20 million if the political party B comes to power. I2 will make a profit of $200 million if the political party A comes to power and will make a loss of $80 million if the political party B comes to power. Suppose the decision maker is able to assign probabilities to the outcomes of the election and determines that party A will win the election with a probability 0.6. If the decision maker chooses the investment I1, his expected reward (in million $) will be _____________. a) 200 b) 52 c) 20 d) 100 e) −20 20. Consider the problem faced by a decision maker who must choose one of two investment opportunities (I1 and I2) in a foreign country. The rewards to these alternatives are uncertain and depend on the outcome of the country’s national election. I1 will make a profit of $100 million if the political party A comes to power and will make a loss of $20 million if the political party B comes to power. I2 will make a profit of $200 million if the political party A comes to power and will make a loss of $80 million if the political party B comes to power. Suppose the decision maker is able to assign probabilities to the outcomes of the election and determines that party A will win the election with a probability 0.6. If the decision maker chooses the investment I2, his expected reward (in million $) will be _____________. a) 200 b) 52 c) 20 d) 100 e) 88 21. Imagine a game in which there is a ten percent chance of winning. Winning brings a reward of $100 and losing brings nothing. If a decision maker is willing to pay $20 to play this game, the decision maker is _______________. a) A risk-avoider b) Is indifferent to the risk c) A risk-taker d) Willing to pay the expected value e) Willing to pay less than the expected value 22. Consider the following decision table in which x, y, and z are decision alternatives and A and B are the two possible states of nature, with probabilities 0.30 and 0.70.
An approach to decision making under uncertainty that is based on a weighted combination of the maximum and the minimum payoffs from each alternative is called the _____________. a) Maximin criterion b) Maximax criterion c) Hurwicz criterion d) Minimax regret strategy e) Weighted regret criterion 16. Consider the decision table given below: What decisions would an optimist and pessimist make? a) d1 and d3 b) d1 and d2 c) d2 and d3 d) d3 and d2 17. Consider the decision table given below: Suppose we are more optimistic than pessimistic and select ( = 0.8 for the weight of optimism. According to Hurwicz criterion, the payoff of the decision maker is_____________. a) 190 b) 138 c) 360 d) 480 18. In decision making under uncertainty, a strategy that is based on lost opportunity is called the _____________. a) Maximin regret strategy b) Maximax criterion c) Hurwicz criterion d) Minimax regret strategy e) Maximax regret strategy 19. Consider the problem faced by a decision maker who must choose one of two investment opportunities (I1 and I2) in a foreign country. The rewards to these alternatives are uncertain and depend on the outcome of the country’s national election. I1 will make a profit of $100 million if the political party A comes to power and will make a loss of $20 million if the political party B comes to power. I2 will make a profit of $200 million if the political party A comes to power and will make a loss of $80 million if the political party B comes to power. Suppose the decision maker is able to assign probabilities to the outcomes of the election and determines that party A will win the election with a probability 0.6. If the decision maker chooses the investment I1, his expected reward (in million $) will be _____________. a) 200 b) 52 c) 20 d) 100 e) −20 20. Consider the problem faced by a decision maker who must choose one of two investment opportunities (I1 and I2) in a foreign country. The rewards to these alternatives are uncertain and depend on the outcome of the country’s national election. I1 will make a profit of $100 million if the political party A comes to power and will make a loss of $20 million if the political party B comes to power. I2 will make a profit of $200 million if the political party A comes to power and will make a loss of $80 million if the political party B comes to power. Suppose the decision maker is able to assign probabilities to the outcomes of the election and determines that party A will win the election with a probability 0.6. If the decision maker chooses the investment I2, his expected reward (in million $) will be _____________. a) 200 b) 52 c) 20 d) 100 e) 88 21. Imagine a game in which there is a ten percent chance of winning. Winning brings a reward of $100 and losing brings nothing. If a decision maker is willing to pay $20 to play this game, the decision maker is _______________. a) A risk-avoider b) Is indifferent to the risk c) A risk-taker d) Willing to pay the expected value e) Willing to pay less than the expected value 22. Consider the following decision table in which x, y, and z are decision alternatives and A and B are the two possible states of nature, with probabilities 0.30 and 0.70. The expected value for decision y is ___________. a) 24 b) 55 c) 209 d) 369 e) 290 23. Consider the following decision table. The expected value of perfect information is __________. a) 55 b) 63 c) 185 d) 353 e) 500 24. A person has a 50-50 chance at winning $100,000 or $0. The person is offered $25,000 to quit the game, and he refuses to quit the game. He is offered $50,000 to quit the game, and he refuses. Finally, when he is offered $70,000 to quit the game, he takes the money. This person is _____________. a) A risk taker b) A risk avoider c) An EMVer d) A gambler e) A profit mongerer
The expected value for decision y is ___________. a) 24 b) 55 c) 209 d) 369 e) 290 23. Consider the following decision table.
An approach to decision making under uncertainty that is based on a weighted combination of the maximum and the minimum payoffs from each alternative is called the _____________. a) Maximin criterion b) Maximax criterion c) Hurwicz criterion d) Minimax regret strategy e) Weighted regret criterion 16. Consider the decision table given below: What decisions would an optimist and pessimist make? a) d1 and d3 b) d1 and d2 c) d2 and d3 d) d3 and d2 17. Consider the decision table given below: Suppose we are more optimistic than pessimistic and select ( = 0.8 for the weight of optimism. According to Hurwicz criterion, the payoff of the decision maker is_____________. a) 190 b) 138 c) 360 d) 480 18. In decision making under uncertainty, a strategy that is based on lost opportunity is called the _____________. a) Maximin regret strategy b) Maximax criterion c) Hurwicz criterion d) Minimax regret strategy e) Maximax regret strategy 19. Consider the problem faced by a decision maker who must choose one of two investment opportunities (I1 and I2) in a foreign country. The rewards to these alternatives are uncertain and depend on the outcome of the country’s national election. I1 will make a profit of $100 million if the political party A comes to power and will make a loss of $20 million if the political party B comes to power. I2 will make a profit of $200 million if the political party A comes to power and will make a loss of $80 million if the political party B comes to power. Suppose the decision maker is able to assign probabilities to the outcomes of the election and determines that party A will win the election with a probability 0.6. If the decision maker chooses the investment I1, his expected reward (in million $) will be _____________. a) 200 b) 52 c) 20 d) 100 e) −20 20. Consider the problem faced by a decision maker who must choose one of two investment opportunities (I1 and I2) in a foreign country. The rewards to these alternatives are uncertain and depend on the outcome of the country’s national election. I1 will make a profit of $100 million if the political party A comes to power and will make a loss of $20 million if the political party B comes to power. I2 will make a profit of $200 million if the political party A comes to power and will make a loss of $80 million if the political party B comes to power. Suppose the decision maker is able to assign probabilities to the outcomes of the election and determines that party A will win the election with a probability 0.6. If the decision maker chooses the investment I2, his expected reward (in million $) will be _____________. a) 200 b) 52 c) 20 d) 100 e) 88 21. Imagine a game in which there is a ten percent chance of winning. Winning brings a reward of $100 and losing brings nothing. If a decision maker is willing to pay $20 to play this game, the decision maker is _______________. a) A risk-avoider b) Is indifferent to the risk c) A risk-taker d) Willing to pay the expected value e) Willing to pay less than the expected value 22. Consider the following decision table in which x, y, and z are decision alternatives and A and B are the two possible states of nature, with probabilities 0.30 and 0.70. The expected value for decision y is ___________. a) 24 b) 55 c) 209 d) 369 e) 290 23. Consider the following decision table. The expected value of perfect information is __________. a) 55 b) 63 c) 185 d) 353 e) 500 24. A person has a 50-50 chance at winning $100,000 or $0. The person is offered $25,000 to quit the game, and he refuses to quit the game. He is offered $50,000 to quit the game, and he refuses. Finally, when he is offered $70,000 to quit the game, he takes the money. This person is _____________. a) A risk taker b) A risk avoider c) An EMVer d) A gambler e) A profit mongerer
The expected value of perfect information is __________. a) 55 b) 63 c) 185 d) 353 e) 500 24. A person has a 50-50 chance at winning $100,000 or $0. The person is offered $25,000 to quit the game, and he refuses to quit the game. He is offered $50,000 to quit the game, and he refuses. Finally, when he is offered $70,000 to quit the game, he takes the money. This person is _____________. a) A risk taker b) A risk avoider c) An EMVer d) A gambler e) A profit mongerer

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> Data gathered on any characteristic of interest (e.g., a company’s sales) over a period of time (e.g., past five or ten years) at regular intervals (e.g., a month or a quarter) is called time-series data. Which of the following elements

> If a data set contains 6 independent variables, the number of all possible regression models will be __________. a) 31 b) 62 c) 63 d) 64 22. The main difference between forward selection and stepwise regression is this: __________. a) Forward selection i

> Which of the following statements is true with regard to higher order (third. fourth, etc.) multiple regression models? a) They do not usually fit the data better than lower-order models. b) The R2 of higher-order models will generally be less than that

> If the scatter plot of y variable versus x variable shows a parabolic shape, which of the following steps would be appropriate to explore the relationship between the two variables? a) Add two more x variables to the regression model b) Add a log x varia

> In a regression study, a multiple regression model with two explanatory variables is developed using a data set with 23 observations. In the ANOVA table for this model, the sum of squares total (SSyy) is = 12500 and the sum of squares error (SSE) = 3000.

> In testing the overall significance of a multiple regression model, the null hypothesis that each one of the β-coefficients of the x-variables in the model is equal to zero, is tested against the alternative hypothesis that __________. a) Each one of the

> The graph of a regression equation with one independent variable, y = b0 + b1 x, yields a straight line in a two-dimensional (x, y) space. To graph a regression equation with two independent variables, y = b0 + b1 x1 + b2 x2, we require a 3-dimensional s

> Which of the following categories of business analytics builds and assesses algorithmic models aimed at making empirical rather than theoretical predictions and is designed to predict future observations: a) Descriptive analytics b) Predictive analytics

> The data in the table below represent number of months spent training (x) and finish times in minutes (y) for a 5K footrace.. Interpret the relationship between the variables x and y. a) There is a strong positive correlation. b) There is a weak positi

> A runner tracks her average weekly mileage while marathon training along with her marathon finish times, given by the table below. Classify the correlation between two variables. Weekly Mileage ______ Marathon Time (mins) 55 …â&

> The proportion of the variability in the dependent variable (y) accounted for or explained by the independent variable (x) is called the __________. a) Correlation coefficient b) Regression slope coefficient c) Regression sum of squares d) Coefficient o

> For a least-squares regression line, the sum of the residuals is __________. a) Always zero b) Always positive c) Always negative d) Sometimes positive and sometimes negative 12. Residuals with large magnitudes can be used to located data points that l

> A graphical tool to illustrate the relationship between matched observations of two variables (e.g., y = the annual cost of operating a commercial airliner and x = the annual number of passengers served by the airline), is __________. a) A histogram b) A

> After establishing an overall significant difference between the means of several groups using ANOVA if we want to determine which pairs of means are significant when the sample sizes are unequal, it is appropriate to use __________. a) A series of t-tes

> A process analyst wants to conduct a study to compare five different welding techniques that have been newly developed. Fifty welders, who work in three different shifts, are randomly selected and randomly assigned to try out a welding technique (each op

> To understand how the weights of the cereal boxes vary among four different adjustable stabilizer settings of the rotary valve on the filling machine in three different production shifts, a manufacturing firm collects sample data using a structure or pla

> A manager wants to test if there is a significant difference in the variance of the output from two similar machines. It has been determined that the output of the two machines is normally distributed. To carry out the hypothesis test about the populatio

> A human resources manager wants to conduct a “before/after” study on 16 employees to determine if a motivation seminar results in an increase in their ratings of the company. The after-ratings are subtracted from the b

> Some common applications of statistics in business include which of the following: a) Predicting the outcome of an election b) Determining consumer sentiment c) Estimating salary data for various demographics d) Comparing the spending of two different gr

> To determine whether two brands of car tires differ in their performance measured in terms of the average wear over the first 10,000 miles, we should conduct __________. a) One hypothesis test for the difference in the two population means b) Two hypothe

> A nutritionist for a university wants to determine an average BMI of its students by taking a random sample of 50 students. The standard deviation of the BMIs of population of students is unknown. She is willing to accept a Type I error rate of 0.05. The

> The dean of a business school claims that the average starting salary of its graduates is more than 85 (in $000’s). It is known that the population standard deviation is 10 (in $000’s). Sample data on the starting salaries of 64 randomly selected recent

> A test of the hypotheses, H0: p = 0.18 and H1: p > 0.18 is a __________. a) One-tailed test b) Two-tailed test c) Test of two sample means d) Test of two sample proportions 14. A test of the hypotheses, H0: p = 0.18 and H1: p ≠ 0.18 is a __________. a) O

> All statistical hypotheses consist of two parts, __________ and __________. a) A null hypothesis; a full hypothesis b) A null hypothesis; a substitute hypothesis c) A null hypothesis; an alternate hypothesis d) A null hypothesis; a substantive hypothesis

> A t-distribution is similar to the z-distribution except that __________. a) It is not unimodal b) It is not symmetrical c) It has more area in the tails d) It is not bell-shaped 21. The following random sample was selected from a normal distribution: 4

> 9. In a normal distribution, what values of z should we choose if we want 90% of the area under the curve symmetrically distributed around the mean? a) ( 1.00 b) ( 1.50 c) ( 1.645 d) ( 1.96 10. In a normal distribution, if we consider the range of values

> The luggage weights for passengers for an airline are normally distributed with a mean of 25 lbs., and a standard deviation of 3 lbs. Suppose the limit on the total luggage weight is 2600 lbs. If 100 passengers are taking the airline, what is the probabi

> Suppose samples of size 100 are drawn randomly from a population that has a mean of 20 and a standard deviation of 5. What is the probability of observing a sample mean between 19 and 20.5? a) 0.3413 b) 0.6826 c) 8165 d) 0.1587 e) 0.6587 15. Suppose sa

> Selection of the winning numbers is a lottery is an example of __________. a) Convenience sampling b) Random sampling c) Nonrandom sampling d) Regulatory sampling 7. A random number generator is usually a computer program which allows computer-calculated

> A score on a 15-point multiple choices quiz measuring knowledge of statistics is an example of a(n) a) Nominal b) Ordinal c) Interval d) Ratio e) Exponential 24. Which level of data measurement allows the most or broadest application of statistical techn

> The shape of a symmetrical binomial distribution with large sample size, i.e., a large number of possible outcomes, would most likely look like a __________. a) Rectangle b) Whale c) Bell d) Hockey stick 23. In which of the following cases would the

> All normal distributions can be converted into a single distribution called the __________. a) Universal or U-distribution b) General or G-distribution c) Standard normal or the z- distribution d) Common or C-distribution 14. To convert any x value of a

> If a continuous random variable has a uniform distribution between 20 and 70, the graph of its distribution will be a rectangle with height equal to __________. a) 50 b) 1/50 c) 20 d) 70 3. The values of a random variable are uniformly distributed

> Which of the following is a characteristic of a hypergeometric distribution? a) It is a continuous distribution. b) It has undefined trials c) The outcome of each trial is a success or a failure or undefined. d) Sampling is done without replacement. e)

> In the distribution of a random variable x which is binomial with number of trials n = 30 and the probability of success p = 0.99, the largest value of x that can occur is __________. a) 24 b) 30 c) 15 d) Infinity 14. One fair coin is tossed 10 times, w

> The random variable defined as the “number of people who arrive at a store during a 15-minute interval,” is an example of __________. a) An experimental random variable b) A continuous random variable c) A discrete random variable d) Not a random variabl

> Fifty percent of all technical assistants would like to have a PC. Eighty percent of all technical assistants would like to have MAC. Fourty-five percent of all technical assistants would like to have both. If a technical assistant is randomly selected,

> A fair coin is tossed 4 times and the events A and B are defined as follows: A: {At least More than 2 heads is observed} B: {The number of heads is odd} Use the knowledge of marginal, union, intersection and conditional probabilities to describe the prob

2.99

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