7) Which of the A) lack of commitment B) subjective solutions C) validity of the

Question

7) Which of the A) lack of commitment B) subjective solutions C) validity of the data D) hard-to-understand mathematics E) resistance to change not not considered a possible problem in th quantitative analysis approach? 7) TRUE/FALSE. Write T if the statement is true and F if the statement is fa 8) Utility theory may help the decision maker indude the impact of qualitative factors that are 8) difficult to include in the EMV model. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answ ers the question. 9) The ability to examine the variability of a solution due to changes in the formulation of a an important part of the analysis of the results. This type of analysis is called A) objective B) scale C) implicit D) sensitivity E) normal 10) Decision trees are particularly useful when A) a sequence of decisions must be made. B) the opportunity loss table is available. C) formulating a conditional values table. D) all possible outcomes and alternatives are not known. E) perfect information is available. 11) Suppose that 10 golfers enter a tournament and that their respective skill levels are approximately 11 the same. Six of the entrants are female and two of those are older than 40 years old. Three of the men are older than 40 years old. What is the probability that the winner will be either female or older than 40 years old? D) 0.000 E) 0.900 B) 0.198 A) 1.100 expected monetary value with the survey is $75,000. The expected monetary value with no survey is $62,000. What is the expected value of sample information? 12) A market research survey is available for $10,000. Using a decision tree analysis, it is found that the A) $13,000 B) $7,000 C)-$7,000 D) $3,000 E) None of the above 13) Expected monetary value (EMV) is A) the amount you would lose by not picking the best alternative. B) the average or expected value of information if it were completely accurate. C) the average or expected value of the decision, if you know what would happen ahead of tir D) the average or expected monetary outcome of a decision if it can be repeated a large numb of times. E) a decision criterion that places an equal weight on all states of nature.

Explanation / Answer

9)
Sensitivity Analysis

10)
Formulating a conditional values table

11)
6 females = 2 older than 40 years + 4
4 men = 3 men older than 40 years + 1

P(F) = 6/10 = 0.6
P(older than 40 years) = 5/10 = 0.5
P(F and older than 40 years) = 2/10 = 0.2

Required probability = 0.6 + 0.5 - 0.2 = 0.9

option (E)

12)
Expected value of sample information = (75000 - 62000)-10000 = 3000

option (D) is correct

13)
(E) A decision criterion that places an equal weight on all states of nature.

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