MGT 391 Quizzes 6 & 7

Decision Tree

It is a diagram consisting of square decision nodes, circle probability nodes, and branches representing decision alternatives.

Hurwicz Criterion

It's a compromise between the maximax and maximin criteria. The principle underlying this decision criterion is that the decision maker is neither totally optimistic (as the maximax criterion assumes) nor totally pessimistic (as the maximin criterion assumes).

Monte Carlo

It's a technique for selecting numbers randomly from a probability distribution.

Risk Taker

People who take a chance on a bonanza with a very low probability of occurrence in lieu of a sure thing.

Pseudorandom Numbers

Random numbers generated by a mathematical process instead of a physical process.

Analogue Simulation

Replaces a physical system with an analogous physical system that is easier to manipulate.