Question 1

If he uses the Laplace criterion, which kind of dwellings will he decide to build?

Accepted Answer

A) single family 
B) apartments 
C) condos 
D) either single family or apartments 
E) either apartments or condos 
A) single family 
B) apartments 
C) condos 
D) either single family or apartments 
E) either apartments or condos

Question 2

For what range of probability that the new cable network will be successful will she select the mixed media strategy?

Accepted Answer

A) 0 - .4 
B) 0 - .55 
C) .4 - .7 
D) .55 - 1 
E) .7 - 1 
A) 0 - .4 
B) 0 - .55 
C) .4 - .7 
D) .55 - 1 
E) .7 - 1

Question 3

If he uses the minimax regret criterion, which size bus will he decide to purchase?

Accepted Answer

A) small 
B) Medium 
C) large 
D) either small or Medium 
E) either medium or large 
A) small 
B) Medium 
C) large 
D) either small or Medium 
E) either medium or large

Question 4

The value of perfect information is inversely related to losses predicted.

Accepted Answer

A) True 
 B)False

Question 5

A manager's staff has compiled the information below which pertains to four capacity alternatives under four states of nature.Values in the matrix are present value in thousands of dollars.
A.

Accepted Answer

@#IMG-DLM& (A) Assuming a maximax strategy, which

Question 6

If she feels the chances of low, medium, and high demand are 50%, 20%, and 30% respectively, what are the expected annual profits for the number of beauticians she will decide to hire?

Accepted Answer

A) $54,000 
B) $55,000 
C) $70,000 
D) $80,000 
E) $135,000 
A) $54,000 
B) $55,000 
C) $70,000 
D) $80,000 
E) $135,000

Question 7

If she uses the minimax regret criterion, how many new examiners will she decide to hire?

Accepted Answer

A) one 
B) two 
C) three 
D) either one or two 
E) either two or three 
A) one 
B) two 
C) three 
D) either one or two 
E) either two or three

Question 8

The maximin strategy would be:

Accepted Answer

A) A 
B) B 
C) C 
D) D 
E) E 
A) A 
B) B 
C) C 
D) D 
E) E

Question 9

What is the probability that script #1 will be a success, but its sequel will not?

Accepted Answer

A) .8 
B) .7 
C) .56 
D) .2 
E) .14 
A) .8 
B) .7 
C) .56 
D) .2 
E) .14

Question 10

Sensitivity analysis is required because _______.

Accepted Answer

A) payoffs and probabilities are estimates 
B) most decision will affect employees 
C) expected payoffs are sensitive to the time value of money 
D) it's the second step in the decision model 
E) with the passage of time, small decisions get bigger 
A) payoffs and probabilities are estimates 
B) most decision will affect employees 
C) expected payoffs are sensitive to the time value of money 
D) it's the second step in the decision model 
E) with the passage of time, small decisions get bigger

Question 11

What is the expected value for the optimum decision alternative?

Accepted Answer

A) $100,000 
B) $60,000 
C) $50,000 
D) $40,000 
E) $20,000 
A) $100,000 
B) $60,000 
C) $50,000 
D) $40,000 
E) $20,000

Question 12

-If you are uncertain which state of nature will occur, and use the maximin criterion, which alternative will you select?

Accepted Answer

The answer of  
-If you are uncertain which state...

Question 13

If she uses the minimax regret criterion, how many beauticians will she decide to hire?

Accepted Answer

A) one 
B) two 
C) three 
D) either one or two 
E) either two or three 
A) one 
B) two 
C) three 
D) either one or two 
E) either two or three

Question 14

If he uses the Laplace criterion, which alternative will he decide to select?

Accepted Answer

A) do nothing 
B) expand 
C) build new 
D) either do nothing or expand 
E) either expand or build new 
A) do nothing 
B) expand 
C) build new 
D) either do nothing or expand 
E) either expand or build new

Question 15

Graphical sensitivity analysis is limited to cases with no more than two alternatives.

Accepted Answer

A) True 
 B)False

Question 16

What is the expected value for the decision alternative to select the cancer lab?

Accepted Answer

A) $100,000 
B) $60,000 
C) $50,000 
D) $40,000 
E) $20,000 
A) $100,000 
B) $60,000 
C) $50,000 
D) $40,000 
E) $20,000

Question 17

The maximax strategy would be:

Accepted Answer

A) small 
B) Medium 
C) med.-large 
D) large 
E) ex-large 
A) small 
B) Medium 
C) med.-large 
D) large 
E) ex-large

Question 18

If he feels the chances of low, moderate, and high demand are 30%, 30%, and 40% respectively, what is his expected value of perfect information?

Accepted Answer

A) $15,000 
B) $61,000 
C) $69,000 
D) $72,000 
E) $87,000 
A) $15,000 
B) $61,000 
C) $69,000 
D) $72,000 
E) $87,000

Question 19

What would be the total payoff if script #1 were a success, but its sequel were not?

Accepted Answer

A) $15,000,000 
B) $10,000,000 
C) $9,000,000 
D) $5,000,000 
E) $-1,000,000 
A) $15,000,000 
B) $10,000,000 
C) $9,000,000 
D) $5,000,000 
E) $-1,000,000

Question 20

If she uses the maximin criterion, which advertising strategy will she use?

Accepted Answer

A) print 
B) mixed 
C) television 
D) either print or mixed 
E) either mixed or television 
A) print 
B) mixed 
C) television 
D) either print or mixed 
E) either mixed or television

Exam 21: Extension 5: Decision Theory

If he uses the Laplace criterion, which kind of dwellings will he decide to build?

For what range of probability that the new cable network will be successful will she select the mixed media strategy?

If he uses the minimax regret criterion, which size bus will he decide to purchase?

The value of perfect information is inversely related to losses predicted.

A manager's staff has compiled the information below which pertains to four capacity alternatives under four states of nature.Values in the matrix are present value in thousands of dollars. A.

If she feels the chances of low, medium, and high demand are 50%, 20%, and 30% respectively, what are the expected annual profits for the number of beauticians she will decide to hire?

If she uses the minimax regret criterion, how many new examiners will she decide to hire?

The maximin strategy would be:

What is the probability that script #1 will be a success, but its sequel will not?

Sensitivity analysis is required because _______.

What is the expected value for the optimum decision alternative?

-If you are uncertain which state of nature will occur, and use the maximin criterion, which alternative will you select?

If she uses the minimax regret criterion, how many beauticians will she decide to hire?

If he uses the Laplace criterion, which alternative will he decide to select?

Graphical sensitivity analysis is limited to cases with no more than two alternatives.

What is the expected value for the decision alternative to select the cancer lab?

The maximax strategy would be:

If he feels the chances of low, moderate, and high demand are 30%, 30%, and 40% respectively, what is his expected value of perfect information?

What would be the total payoff if script #1 were a success, but its sequel were not?

If she uses the maximin criterion, which advertising strategy will she use?

Introduction to Operations Management

Competitiveness, Strategy, and Productivity

Forecasting

Product and Service Design

Strategic Capacity Planning for Products and Services

Process Selection and Facility Layout

Work Design and Measurement

Location Planning and Analysis

Management of Quality

Quality Control

Aggregate Planning and Master Scheduling

MRP and ERP

Inventory Management

Jit and Lean Operations

Supply Chain Management

Scheduling

Project Management

Management of Waiting Lines

Linear Programming

Extension 4: Reliability

Extension 7: Learning Curves

Extension 8: The Transportation Model

Extension 10: Acceptance Sampling

Extension 14: Maintenance

Filters