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
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
Chapter7: Uncertainty
Section: Chapter Questions
Problem 7.7P
Related questions
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
Transcribed Image Text: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
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you