RMI Assignment 3 Questions

According to the text, which of the following is a recommended method of evaluating the best course of action in a multi-stage decision-making problem? a. creating a decision tree b. developing perfect information c. listing negative factors in the external environment d. none of the above

A

The LaPlace Principle: a. treats uncertain events as equally probable b. is used when there is complete certainty about all events c. uses expected mean when dealing with cost d. always adopts a strategy with the highest mean

A

The expectation theory: I. Is the best method for making decisions currently available II. Is seldom used by organizations a. I only b. II only c. Both I and II d. Neither I nor II

A

What is the answer to Module 3: Presentation Question #1? a. Mercedes-Benz b. AT&T c. Publix d. GM

A

What is the answer to Module 3: Presentation Question #3? a. risk permeates nearly every decision you make b. any time a company fails, it is a failure of risk management c. risk should be minimized at all costs d. Tom Brady sold his soul to the devil for Super Bowl glory and a supermodel wife e. none of these matter

A

What is the answer to Module 3: Presentation Question #4? a. true b. false

A

What is the optimal choice with the strategy that has the highest expected pay-off? a. expectation theory b. maximax or minimin principle c. Laplace principle d. maximin or minimax principle

A

Which of the following determines optimal strategies when a decision maker is faced with several different alternatives and a risky pattern of future events? a. decision theory b. economic theory c. uncertainty theory d. likelihood theory

A

Decision Theory: I. provides the framework for decision-making when conditions are certain II. determines optimal strategies when faced with several alternatives and a risky pattern of future events a. I only b. II only c. I and II d. Neither I nor II

B

Factors to consider when selecting criteria for decision rules include I. the decision maker's attitude II. the nature of the situation a. I only b. II only c. I and II d. Neither I nor II

B

Requirements for using a Payoff Matrix include all of the following except: a. clearly determined courses of actions and events b. must result in a sequence of decisions c. there must be a limited number of outcomes d. the events and actions must be mutually exclusive

B

This principle is adopted by pessimistic decision-makers who are most conservative in their approach. a. Laplace principle b. Maximin or minimax principle c. Maximax or minimin principle d. Nyce principle

B

What is the answer to Module 3: Presentation Question #5? a. single stage decision b. multi-stage decision c. neither d. both

B

A pay-off is a(n) ______________ value in the sense that associated with each course of action is a certain profit/loss. a. alternative b. variable c. conditional d. future

C

The _______________ principle of decision-making stipulates that a decision-maker's view is usually extreme optimism. a. Laplace Principle b. Maximin or Minimax Principle c. Maximax or Minimum Principle d. Hurwicz Principle

C

The decision situations wherein the decision-maker chooses to consider several possible outcomes and the probabilities of their occurrence can be stated or called ________________. a. decisions under likelihood b. decisions based on expectation c. decisions under risk d. decisions under maximum probability

C

What is the name for a solution that is obtained by working backwards, from right to left, through a decision tree? a. backwards-thinking b. regressive method c. rollback technique d. progressive method

C

What is the answer to Module 3: Presentation Question #2? a. Mercedes-Benz/Chrysler b. Burger King/McDonalds c. Pepsi/Coke d. Ask.com/Google

D

What is the difference between a decision node/decision fork and the chance node/chance fork in the decision tree? a. a decision node indicates that a decision was made in the decision process, and the chance node indicates what occurred. b. decision nodes indicate optimal decisions made and the chance nodes indicate probability the decision will be successful. c. decision nodes occur where a profit can be made, and chance nodes only occur where there is a possibility of loss. d. decision nodes are at locations where a decision needs to be made, and chance nodes are at locations which happen as a result of the decisions

D

Which of the following is not a step in decision theory? a. identification of the various possible outcomes b. choosing from among the various alternatives c. determination of the pay-off function which describes consequences d. forming an economic framework analysis

D

There are several requirements to properly use a pay-off matrix. The events, or outcomes, of actions considered must be: I. Mutually beneficial II. Collectively exhaustive III. Distinct a. I b. II c. III d. I &II e. II & III f. I, II, III

E