Quantitative Analysis Ch.1-4 Study Guide. sds

If two events are mutually exclusive, then the probability of the intersection of these two events will equal:

0

In a standard normal distribution, the mean is equal to:

0

If P(A) = 0.4 and P(B) = 0.5 and P(A and B) = 0.2, then P(B/A)=

0.50

if P(A) = 0.4 and P(B) = 0.5 and P(A and B) = 0.2 then P(A or B) =

0.7

The total area under the curve for any continuous distribution must equal:

1

If a normal distribution has a mean of 2000 and a standard deviation of 10; 99.7% of the population falls within what range of values?

170-230

In the normal distribution, 95.45% of the population lies within:

2 standard deviations of the mean.

A decision tree is preferable to a decision table when?

A number of sequential decisions are to be made

On a decision tree, at each state-of-nature node....?

An EMV is calculated.

In decision theory terminology, a course of action or strategy that may be chosen by a decision maker is called?

An alternative.

In using the criterion of realism, the coefficient of realism (a)?

Describes the degree of optimism of the decision maker

The minimum expected opportunity loss is

Equal to the expected value of perfect information

The EVSI

Equals the EMV with sample information assuming no cost for the information minus the EMV without sample information

Which of the following is a decision-making criterion that is used for decision making under risk?

Expected monetary value criterion

If the rational person selects an alternative that does not maximize the EMV, we would expect that this alternative?

Maximizes the expected utility

Frederick Winslow Taylor

Pioneered the principles of scientific management.

Bayes' theorem is used to revise probabilities. The new revised probabilities are called?

Posterior probabilities.

If probabilities are available to the decision maker, then the decision-making environment is called

Risk

In decision theory, probabilities are associated with?

States of nature.

The most that a person should pay for perfect information is?

The EVPI

The minimum EOL criterion will always result in the same decision as?

The maximum EMV criterion

In assessing utility values

The worst outcome is given a utility of 0

On a decision tree, once the tree has been drawn and the payoffs and probabilities have been placed on the tree, the analysis?

Working backward, starting on the right and moving to the left

Quantitative analysis is:

a logical, rational, and scientific approach to decision making.

An input (such as variable cost per unit or fixed cost) for a model is an example of:

a parameter

A deterministic model is one in which:

all parameters used in the model are known with complete certainty

Sensitivity analysis is most often associated with which step of the quantitative analysis approach?

analyzing the results

In analyzing a problem, you should normally study:

both the qualitative and quantitative aspects

The point at which the total revenue equals total cost(meaning zero profit) is called the:

break-even point.

Decision variables are:

controllable.

A measure of central tendency is:

expected value.

The term algorithm:

is named after Algorismus, named after a ninth-century Arabic mathematician, and describes a series of steps or procedures to be repeated.

The probability of two or more independent events occurring is the:

joint probability.

Quantitative analysis is typically associated with the use of:

mathematical models

Probabilities for all the possible values of a discrete random variable:

must sum to 1.

If only one event may occur on any one trial, then the events are said to be.

mutually exclusive.

New probabilities that have been found using Bayes' theorem are called:

posterior probabilities

Which of the following categories of business analytics involves the use of optimization models?

prescriptive.

An analysis to determine how much a solution would change if there were changes in the model or the input data is called:

sensitivity or postoptimality analysis.

The square root of the variance is the:

standard deviation.

Which of the following is an example of a discrete distribution?

the Poisson distribution.

To compute the variance, of a discrete random variable you need to know the:

variable's possible values expected value of the variable probability of each possible value of the variable.