MODULE A - MODULE A: DECISION-MAKING TOOLS TRUE/FALSE 1....

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Unformatted text preview: MODULE A: DECISION-MAKING TOOLS TRUE/FALSE 1. Analytic decision making is based on logic and considers all available data and possible alternatives. True (The decision process in operations, easy) {AACSB: Analytic Skills} 2. The last step in the analytic decision process clearly defines the problem and the factors that influence it. False (The decision process in operations, easy) {AACSB: Analytic Skills} 3. A state of nature is an occurrence of a situation over which the decision maker has little or no control. True (Fundamentals of decision making, easy) 4. In a decision tree, a square symbol represents a state of nature node. False (Fundamentals of decision making, moderate) 5. If a decision maker can assign probabilities of occurrence to the states of nature, then the decision is being made under conditions of uncertainty. False (Types of decision-making environments, moderate) 6. An example of a conditional value would be the payoff from selecting a particular alternative when a particular state of nature occurs. True (Types of decision-making environments, moderate) 7. The maximax criterion of decision making requires that all decision alternatives have an equal probability of occurrence. False (Types of decision-making environments, easy) 8. The maximin criterion is pessimistic, while the maximax criterion is optimistic. True (Types of decision-making environments, easy) 9. If a decision maker knows for sure which state of nature will occur, he/she is making a decision under certainty. True (Types of decision-making environments, moderate) 10. The expected value with perfect information assumes that all states of nature are equally likely. False (Types of decision-making environments, easy) 11. An example of expected monetary value would be the payoff from selecting a particular alternative when a particular state of nature occurs. False (Decision tables, moderate) 12. The expected monetary value of a decision alternative is the sum of all possible payoffs from the alternative, each weighted by the probability of that payoff occurring. True (Types of decision-making environments, easy) 478 13. If a decision maker has to make a certain decision only once, expected monetary value is a good indication of the payoff associated with the decision. False (Types of decision-making environments, moderate) 14. The expected value of perfect information is the same as the expected value with perfect information. False (Decision tables, moderate) 15. Decision trees and decision tables can both solve problems requiring a single decision, but decision tables are the preferred method when a sequence of decisions is involved. False (Decision trees, easy) 16. In a decision tree, the expected monetary values are computed by working from right to left....
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MODULE A - MODULE A: DECISION-MAKING TOOLS TRUE/FALSE 1....

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