1. Utility values typically range from -1 to 1 1 to 10 0 to 1 1 to 100 None of t
ID: 2900659 • Letter: 1
Question
1. Utility values typically range from
-1 to 1
1 to 10
0 to 1
1 to 100
None of these
2. The optimistic decision criterion is the criterion of ________.
maximax
maximin
realism
equally likely
minimax regret
3. A market research survey is available for $10,000. Using a decision tree analysis, it is found that the expected monetary value with no survey is $62,000. If the expected value of sample information is -$7,000, what is the expected monetary value with the survey?
$45,000
$62,000
-$17,000
$55,000
None of these
4. Suppose that we determine the probability of a warm winter based on the number of warm winters experienced over the past 10 years. In this case, we have used ________.
relative frequency
the classical method
the logical method
subjective probability
None of these
5. The expected value of sample information (EVSI) can be used to
establish a maximum amount to spend on additional information.
calculate conditional probabilities.
establish risk avoidance.
provide points on a utility curve.
None of thes
-1 to 1
1 to 10
0 to 1
1 to 100
None of these
Explanation / Answer
1)D
2)A
3)A
4)D
5)D
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