I already got the answers for questions 1,2,3 in a previous submission.Please assist with questions 4, 5, 6, 7, 8 , 9 1. Which of the following refers to the random6. A situation in which a decision maker knows allof the possible outcomes of a decision and alsoknows the probability associated with eachoutcome is referred to as(chance) occurrences that can affect theoutcome of an individual's decision?A. States of NatureA. certaintyВ. riskВ.Decision criteriaС. РаyoffD. Decision TreeC. strategyD. uncertaintyIn decision analysis, which of the following isNOT a criterion for making decisions under2.In the decision tree shown below, how manyuncertainty?A. Minimin criterion7.state of nature nodes are shown?В.Maximax criterionAction 24Condition 3C. Equally likely criterionD. Hurwicz criterionAction 13Condition 1Action 35Condition 4Action 43. Which of the following measures risk?A. Coefficient of variationB. Standard deviationCondition 2A.C. Expected valueВ.С.4D. VarianceD.4.In terms of decision theory, an occurrence orsituation over which the decision maker has no8.A pessimistic decision making criterion iscontrol is called a/an:sometimes called:A. alternativeA.maximin criterionВ.decision treeВ.maximax criterionC.decision under certaintyC.equally likely criterionD.state of natureD.decision making under certainty5. A strategy that yields an expected monetary9. A situation in which a decision maker mustpayoff of zero is called aA. Risk neutral strategychoose between strategies that have more thanone possible outcome when the probability ofB. Fair gameeach outcome is unknown is referred to asA. diversificationB. certaintyC. riskC. Zero-sum gameD. Certainty equivalentD. uncertainty2

Hi! Thank you for the question. As per the honor code, We’ll answer the fourth question since more…

Answered: 4. In terms of decision theory, an…

4. In terms of decision theory, an occurrence or situation over which the decision maker has no control is called a/an: A. alternative B. decision tree C. decision under certainty D. state of nature

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter7: Uncertainty

Section: Chapter Questions

Problem 7.7P

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Question

I already got the answers for questions 1,2,3 in a previous submission.

Please assist with questions 4, 5, 6, 7, 8 , 9

1. Which of the following refers to the random
6. A situation in which a decision maker knows all
of the possible outcomes of a decision and also
knows the probability associated with each
outcome is referred to as
(chance) occurrences that can affect the
outcome of an individual's decision?
A. States of Nature
A. certainty
В. risk
В.
Decision criteria
С. Раyoff
D. Decision Tree
C. strategy
D. uncertainty
In decision analysis, which of the following is
NOT a criterion for making decisions under
2.
In the decision tree shown below, how many
uncertainty?
A. Minimin criterion
7.
state of nature nodes are shown?
В.
Maximax criterion
Action 2
4
Condition 3
C. Equally likely criterion
D. Hurwicz criterion
Action 1
3
Condition 1
Action 3
5
Condition 4
Action 4
3. Which of the following measures risk?
A. Coefficient of variation
B. Standard deviation
Condition 2
A.
C. Expected value
В.
С.
4
D. Variance
D.
4.
In terms of decision theory, an occurrence or
situation over which the decision maker has no
8.
A pessimistic decision making criterion is
control is called a/an:
sometimes called:
A. alternative
A.
maximin criterion
В.
decision tree
В.
maximax criterion
C.
decision under certainty
C.
equally likely criterion
D.
state of nature
D.
decision making under certainty
5. A strategy that yields an expected monetary
9. A situation in which a decision maker must
payoff of zero is called a
A. Risk neutral strategy
choose between strategies that have more than
one possible outcome when the probability of
B. Fair game
each outcome is unknown is referred to as
A. diversification
B. certainty
C. risk
C. Zero-sum game
D. Certainty equivalent
D. uncertainty
2

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