Week 9 Quiz CH 14

Week 9 Quiz CH 14 - Week 9 Chapter 14 Quiz 1. When a...

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Unformatted text preview: Week 9 Chapter 14 Quiz 1. When a parameter is uncertain, we treat it as if it could take on two or more values, depending on influences beyond our control. What are these influences called? a. Uncertain inputs b. Expected utility c. Chance node d. States of nature 2. Decision trees can be built using fairly standard procedures. Which of the following is a general procedure for constructing trees? a. Determine the essential decisions and uncertainties. b. Start the tree with a decision node representing the first decision. c. Select a representative number of possible choices for the decision node. d. All of the above 3. The _______ is the monetary difference between the best possible payoff for that state and the payoff for the specific action. It is measured as the difference between the best and worst possible payoff for each option. a. Maximin payoff criterion b. Minimax regret criterion c. Regret d. None of the above 4. The __________ shows all the possible economic outcomes and provides the probability of each; it is a 4....
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This note was uploaded on 01/11/2012 for the course POL 300 taught by Professor Hafezi during the Spring '09 term at Strayer.

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