DAFinal52010 - SQQP5023 8/05/2010 Time: 2 hours Matric No:...

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SQQP5023 8/05/2010 Time: 2 hours Matric No:
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TRUE /FALSE CH3 1. Expected Monetary Value (EMV) is the average or expected monetary outcome of a decision if it can be repeated a large number of times. ANSWER: 2. Expected Monetary Value (EMV) is the payoff you should expect to occur when you choose a particular alternative. ANSWER: 3. All decisions that result in a favorable outcome are considered to be good decisions. ANSWER: 4. The difference in decision making under risk and decision making under uncertainty is that under risk, we think we know the probabilities of the states of nature, while under uncertainty we do not know the probabilities of the states of nature. ANSWER: 5. EVPI (Expected Value of Perfect Information) is a measure of the maximum value of additional information. ANSWER: 6. By studying a person's Utility Curve, one can determine whether the individual is a risk seeker, risk avoider, or is indifferent to risk. ANSWER: 7. The equally likely decision criterion is also called the Laplace criterion. ANSWER: 8. In a decision problem where we wish to use Bayes' theorem to calculate posterior probabilities, we should always begin our analysis with the assumption that all states of nature are equally likely, and use the sample information to revise these probabilities to more realistic values. ANSWER: 9. Any problem that can be presented in a decision table can also be graphically portrayed in a decision tree. ANSWER:
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10. Any problem that can be represented in a decision tree can be easily portrayed in a decision table. ANSWER: C14 11. The goal of most waiting line problems is to identify the service level that minimizes service cost. ANSWER: 12. Two characteristics of arrivals are the line length and queue discipline. ANSWER: 13. Limited calling populations are assumed for most queuing models. ANSWER: 14. An "infinite calling population" occurs when the likelihood of a new arrival depends upon the number of past arrivals. ANSWER: 15. On a practical note – if we were to study the waiting lines in a hair salon that had only five chairs for patrons waiting, we should use an infinite queue waiting line model. ANSWER: 16. If we are studying the arrival of automobiles at a highway toll station, we can assume an infinite calling population. ANSWER: 17. When looking at the arrivals at the ticket counter of a movie theater, we can assume an unlimited queue. ANSWER: 18. Arrivals are random when they are dependent on one another and can be predicted. ANSWER: 19. An automatic car wash is an example of a constant service time model.
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ANSWER: 20. In a constant service time model, both the average queue length and average waiting time are halved. ANSWER: 21. A hospital ward with only 30 beds could be modeled using a finite population model. ANSWER:
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This note was uploaded on 12/12/2011 for the course ECONOMICS 101 taught by Professor Thoman during the Spring '09 term at Abu Dhabi University.

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DAFinal52010 - SQQP5023 8/05/2010 Time: 2 hours Matric No:...

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