BUS 31.4 Review Quiz 1 - Copy

BUS 31.4 Review Quiz 1 - Copy - Realize when to use...

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CIS 10.31 / BUS 31.4 Review S. Neuburger Chapter 1 - Introduction Key Terms: Break-Even Point Quantitative vs. Qualitative Analysis Deterministic vs. Stochastic/Probabilistic Model Frederick Taylor Frank Gilbreth You should know how to: Calculate profits based on selling price per unit, fixed costs and variable costs. Calculate break-even point based on selling price per unit, fixed costs and variable costs. Chapter 2 – Review of Probability Concepts Key Terms: Probability Event Dependent vs. Independent events Conditional Probability Mutually Exclusive events Collectively Exhaustive events Expected Value You should know how to: Calculate probability of simple events Differentiate between rule of addition for mutually exclusive and not mutually exclusive events Recognize when events are independent
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Unformatted text preview: Realize when to use conditional probability Identify events that are mutually exclusive Identify events that are collectively exhaustive Calculate conditional probability Calculate probability for data that follows a Binomial distribution Calculate probability for data that follows a Normal distribution Chapter 3 Decision Theory Key Terms: Alternative State of Nature Regret Utility You should know how to: Derive probability loss (regret) matrix from payoff table Set up decision tree to represent sequence of decisions Choose optimal action based on the following criteria: o Maximax profit o Maximin profit o Minimax regret o Equally likely (Laplace) o Criterion of Realism (Hurwicz) o Max EMV / Min EOL o Max Expected Utility...
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