BA 325 Final

The efficiency of sample information is

A measure of how good the sample information is relative to perfect information.

In a multicriteria decision problem

A problem that involves more than one criterion; the objective is to find the "best" solution, taking into account all the criteria.

To select a value for α for exponential smoothing

All of the alternatives are true.

Decision alternatives

Options available to the decision maker.

Inputs to a quantitative model

are uncertain for a stochastic model.

States of nature

can describe uncontrollable natural events such as floods or freezing temperatures.

Sensitivity analysis considers

changes in the values of the payoffs.

Media selection problems usually determine

how many times to use each media source

Identification and definition of a problem

is the first step of decision making

The focus of smoothing methods is to smooth out

random fluctuations

The trend pattern is easy to identify by using

regression analysis

Making a good decision

requires a clear understanding of decision alternatives, states of nature, and payoffs.

The range of feasibility measures

the right-hand-side values for which the dual prices will not change

Decision criteria

the standards used to guide judgments and decisions

To find the EVSI,

use prior and sample information probabilities to calculate revised probabilities.

A constraint with a positive slack value

will have a dual price of zero

Decision variables

within the context of optimization modeling, variables that will be manipulated to find the best solution