decisions final exam

For a ______________ problem, the conservative approach often is referred to as the minimax approach.

minimization

The defined range for a VLOOKUP formula must have at least ________ rows or columns.

two

Goal seek is part of a suite of data tools used for

what-if analysis.

The process of changing the values in cells to see how those changes affect the outcome of formulas on a worksheet is called

what-if analysis.

_________ can be used to determine the maximum loan amount with payments that stay within your budget.

Goal seek

________ functions search for a corresponding value in a defined range of cells located in another part of the workbook.

Lookup

___________ functions look up a value in a defined range of cells located in another part of the corresponding workbook to find a value.

Lookup

A payoff table shows payoffs for the combinations of

all decision alternatives and all states of nature.

Brit wants to sell throw blankets for the holiday season at a local flea market. Brit purchases the throws for $40, and sells them to his customers for $55. Assume there is no leftover value for unsold units. The payoff, if he orders 100 and demand is 100, is ______.

$1500

The Excel operator for "not equal to" is

< >

A theorem that enables the use of sample information to revise prior probabilities is called

Bayes' Theorem

A logical function that counts the cells that meet specific criteria in a specified range is ________.

COUNTIF

If a column of data holds the marital status for members of a gym, the ________ function could be used to determine how many members are "single".

COUNTIF

Expected value of sample information (EVSI) can be calculated by:

EVSI = expected value with sample information - expected value without sample information

Which of the following is a logical function that will add values in multiple ranges that meet multiple criteria?

SUMIF

Which statement is NOT true of influence diagrams?

The influence diagram is a means of gaining influence over competitors.

In a make-versus-buy decision, companies have to decide whether they should manufacture a product or outsource its production to another firm.

True

An Excel function that searches values in a table array arranged in columns is the ______________ function.

VLOOKUP

A one-way data table summarizes

a single input's impact on the output of interest.

Using various interest rates to determine the amount of loan payments is an example of

a what-if analysis.

The states of nature are defined so that no more than one can occur and at least one must occur. This is called mutually exclusive and _________________ respectively.

collectively exhaustive

The states of nature are defined so that they are

collectively exhaustive and mutually exclusive.

The utility function of a risk seeking person is

concave.

The probability of one event given the known outcome of a (possibly) related event is called a

conditional probability.

The utility function of a risk averse person is

convex

Graphical representations of decision problems that show the sequential nature of the decision-making process are known as

decision trees.

The ________________ is an approach to choosing a decision alternative based on the expected value of each decision alternative. The recommended decision alternative is the one that provides the best expected value.

expected value approach

A method to find a specific value in a cell by adjusting the value of another cell is

goal seek.

A(n) _______ is a visual representation that shows which entities affect others in a model.

influence diagram

Which is NOT a component of a decision tree?

leaf

Which of the following is NOT possible with VLOOKUP?

look up values located in a column to the left of the column that contains the lookup value

For a ______________ problem, the conservative approach often is referred to as the maximin approach.

maximization

A curve that depicts the relationship between ______________ and utility is known as the utility function for money.

monetary value

The difference between the optimal payoff and the actual payoff received is called

opportunity loss.

With reference to a spreadsheet model, an uncontrollable model input is known as a(n) __________.

parameter

A tabular presentation that shows the combinations of outcomes for decision alternatives and states of nature is called a

payoff table

A measure of the outcome of a decision such as profit, cost, or time is known as a

payoff.

States of nature are possible outcomes for chance events that affect the ____________ associated with a decision alternative.

payoffs

The COUNTIF function takes two arguments. What are they (in proper order)?

range of cells to check and logical condition

The amount of loss from not making the best decision for each state of nature is referred to as

regret.

The difference between the expected value of a lottery and the guaranteed payoff can be viewed as the _________________ that the decision maker is willing to pay.

risk premium

VLOOKUP assumes that the first column of the table is

sorted in ascending order.

The decision alternative recommended by the conservative approach is the one that provides _______________ possible payoffs.

the best of the worst