2 out of 2 points

| |

| The basic decision environment categories areAnswer | | | | | Selected Answer:| all of the above|

Correct Answer:| all of the above|

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Question 2

2 out of 2 points

| |

| The maximax criterion results in theAnswer | | | |

| Selected Answer:| maximum of the maximum payoffs| Correct Answer:| maximum of the maximum payoffs|

| | | |

Question 3

2 out of 2 points

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| The maximin approach to decision making refers toAnswer | | | | | Selected Answer:| maximizing the minimum return| Correct Answer:| maximizing the minimum return|

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Question 4

2 out of 2 points

| |

| The maximax criterion results in the maximum of the minimum payoffs. Answer | | | |

| Selected Answer: | False|

Correct Answer: | False|

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Question 5

2 out of 2 points

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| A state of nature is an actual event that may occur in the future. Answer | | | |

| Selected Answer: | True|

Correct Answer: | True|

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Question 6

2 out of 2 points

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| The minimax regret criterionAnswer | | | |

| Selected Answer:| minimizes the maximum regret|

Correct Answer:| minimizes the maximum regret|

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Question 7

2 out of 2 points

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| Regret is the difference between the payoff from the best decision and all other decision payoffs. Answer | | | |

| Selected Answer: | True|

Correct Answer: | True|

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Question 8

2 out of 2 points

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| A dominant decision is one that has better payoff than another decision under each state of nature. Answer | | | |

| Selected Answer: | True|

Correct Answer: | True|

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Question 9

2 out of 2 points

| |

| The equal likelihood criterion multiplies the decision payoff for each state of nature by an equal weight. Answer | | | |

| Selected Answer: | True|

Correct Answer: | True|

| | | |

Question 10

2 out of 2 points

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| The coefficient of optimism is a measure of the decision maker's optimism. Answer | | | |

| Selected Answer: | True|

Correct Answer: | True|

| | | |

Question 11

2 out of 2 points

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| The term opportunity loss is most closely related toAnswer | | | | | Selected Answer:| minimax regret|

Correct Answer:| minimax regret|

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Question 12

0 out of 2 points

| |

| The maximin criterion results in the maximum of the minimum payoffs. Answer | | | |

| Selected Answer: | False|

Correct Answer: | True|

| | | |

Question 13

2 out of 2 points

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| The Hurwicz criterion is a compromise between the maximax and maximin criteria. Answer | | | |

| Selected Answer: | True|

Correct Answer: | True|

| | | |

Question 14

2 out of 2 points

| |

| Regret is the difference between the payoff from theAnswer | | | | | Selected Answer:| best decision and all other decision payoffs| Correct Answer:| best decision and all other decision payoffs|

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Question 15

2 out of 2 points

| |

| Determining the worst payoff for each alternative and choosing the alternative with the best worst is calledAnswer | | | | | Selected Answer:| maximin|

Correct Answer:| maximin|

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Question 16

2 out of 2 points

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| Expected opportunity loss is the expected value of the regret for each decision. Answer | | | |

| Selected Answer: | True|

Correct Answer: | True|

| | | |

Question 17

2 out of 2 points

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| The ______________ minimizes the maximum regret.Answer | | | | | Selected Answer:| minimax regret criterion|

Correct Answer:| minimax regret criterion|

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Question 18

2 out of 2 points

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| The maximin criterion results in theAnswer | | | |

|...