BUAL 5380 Exam 2

Refer to Exhibit 3. What is the value of the probability missing in cell B19?

0.16

Refer to Exhibit 3. What is the value of the probability missing in cell B18?

0.84

Suppose that the regrets for an alternative with three states of nature are: 20, 10, and 0. The probabilities of these states of nature are 0.2, 0.3, and 0.5, respectively. The expected regret for the alternative is equal to

7

Technique(s) used in classification step of data mining include

All of the above

In discriminant analysis the averages for the independent variables for a group define the

Centroid

Data mining tasks fall in the following categories

Classification, prediction, association

A state of nature

Is observed

____________ is a classification technique that estimates the probability of an observation belonging to a particular group

Logistical Regression

Suppose that two variables are found to be significantly correlated. A researcher may

Remove ONE variable from the data set

The ____ correspond to future events that are not under the control of the decision maker.

States of nature

The goal of discriminant analysis is

To develop a rule for predicting to what group a new observation in MOST LIKELY to belong

Refer to Exhibit 14.1. What decision should be made according to the maximax decision rule? a. A b. B c. C d. Bank

a. A

The decision rule which determines the maximum payoff for each alternative and then selects the alternative associated with the largest payoff is the a. maximax decision rule. b. maximin decision rule. c. minimax regret decision rule. d. minimin decision rule.

a. maximax decision rule.

Many organizations must determine how to schedule employees to provide adequate service. If we assume that an organization faces the same situation each week, this is referred to as a. static scheduling problem b. dynamic scheduling problem c. transportation scheduling problem d. All of these options

a. static scheduling problem

The problem which deals with the direct distribution of products from supply locations to demand locations is called a(n) a. transportation problem b. assignment problem c. network problem d. transshipment problem

a. transportation problem

Refer to Exhibit 14.7. What is the decision maker's risk premium for this problem? a. $20,000 b. -$25,900 c. $70,000 d. $80,000

b. -$25,900

Which of the following is true regarding multiple optimal solutions? a. All solutions have the same values for the decision variables b. All solutions have the same value for the objective function c. All solutions have the same shadow prices d. All of these options

b. All solutions have the same value for the objective function

Refer to Exhibit 14.1. What decision should be made according to the minimax regret decision rule? a. A b. B c. C d. Bank

b. B

A typical transportation problem requires which of the following sets of input numbers: a. Capacities, demands and flows b. Capacities, demands and unit shipping costs c. Supplies, demands and flows d. Supplies, demands and arcs

b. Capacities, demands and unit shipping costs

Decision analysis supports all but one of the following goals. Which goal is not supported? a. Help make good decisions. b. Help ensure selection of good outcomes. c. Analyze decision problems logically. d. Incorporate problem uncertainty.

b. Help ensure selection of good outcomes.

Rounding the solution of a linear programming to the nearest integer values provides a(n) a. integer solution that is optimal b. integer solution that may be neither feasible nor optimal c. feasible solution that is not necessarily optimal d. infeasible solution

b. integer solution that may be neither feasible nor optimal

A "risk averse" decision maker assigns the ____ relative utility to any payoff but has a(n) ____ marginal utility for increased payoffs. a. largest; increasing b. largest; diminishing c. smallest; diminishing d. smallest; increasing

b. largest; diminishing

Which decision rule pessimistically assumes that nature will always be "against us" regardless of what decision we make? a. maximax decision rule. b. maximin decision rule. c. minimax regret decision rule. d. minimin decision rule.

b. maximin decision rule.

The category of decision rules that contains the maximax decision rule is the a. optimistic category. b. non-probabilistic category. c. probabilistic category. d. optimality category.

b. non-probabilistic category.

Refer to Exhibit 14.4. What is the expected value with perfect information for the investor? a. 13.5 b. 45.5 c. 59 d. 80

c. 59

Refer to Exhibit 14.6. What formula should go in cell C13 of the probability table? a. =C5/$D4 b. =C5/C$6 c. =C5/$D5 d. =C4/$D4

c. =C5/$D5

Refer to Exhibit 14.1. What decision should be made according to the maximin decision rule? a. A b. B c. C d. Bank

c. C

The flow balance constraint for each transshipment node, in a minimum cost network flow model, takes the form a. Flow in Flow out + Net supply b. Flow out Flow in + Net supply c. Flow in = Flow out d. Flow out Flow in + Net supply e. Flow in Flow out + Net demand

c. Flow in = Flow out

A payoff matrix depicts ____ versus ____ with payoffs for each intersection cell. a. decision criteria; states of nature. b. decision alternatives; potential outcomes. c. decision alternatives; states of nature. d. decision criteria; potential outcomes.

c. decision alternatives; states of nature.

In a network representation of a transportation problem, the arcs generally represent: a. warehouses b. geographic locations c. flows d. capacities

c. flows

The objective in transportation problems is typically to: a. maximize profits b. maximize revenue c. minimize costs d. maximize feasibility

c. minimize costs

How are states of nature assigned probabilities? a. Use historical data. b. Use best judgements. c. Use interview results. d. All of these.

d. All of these.

Which of the following does not represent a broad class of applications of linear programming models? a. Blending models b. Financial portfolio models c. Logistics models d. Set covering models e. Forecasting models

e. Forecasting models