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Self TEST QUANTI with answers - Self-Test Decision Tree...

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Self-Test – Decision Tree 10. Bayes’ theorem is used to revise probabilities. The new (revised) probabilities are called a. prior probabilities. b. sample probabilities. c. survey probabilities. d. posterior probabilities. 11. On a decision tree, at each state-of-nature node, EMV is selected. together. probability is selected. 12. The EVSI without sample information from the EMV with sample information. value of perfect information. information assuming no cost for the information minus the EMV without sample information. 13. The efficiency of sample information without SI) expressed as a percentage. percentage. information were perfect. and the maximum EMV. 14. On a decision tree, once the tree has been drawn and the payoffs and probabilities have been placed on the tree, the analysis (computing EMVs and selecting the best alternative) a. is done by working backward (starting on the right and moving to the left). b. is done by working forward (starting on the left and moving to the right). c. is done by starting at the top of the tree and moving down.
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d. is done by starting at the bottom of the tree and moving up. 15. In assessing utility values, utility of –1. utility of 0. utility of 0. value of –1. 16. If a rational person selects an alternative that does not maximize the EMV, we would expect that this alternative each possible payoff. 1. In decision theory terminology, a course of action or a strategy that may be chosen by a decision maker is called
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