Question 1

Application of Bayes' theorem enables us to compute​ the

Accepted Answer

A)   prior probability of each state of nature.
B)   posterior probability of each sample outcome.
C)   conditional probability of the sample outcomes given each state of nature.
D)   conditional probability of the states of nature given each sample outcome.

Question 2

Prior probabilities are the probabilities of the states of nature _____ information.

Accepted Answer

A)   after obtaining sample
B)   prior to obtaining perfect
C)   prior to obtaining sample
D)   after obtaining perfect

Question 3

Below you are given a profit payoff table involving three decision alternatives and three states of nature. 1 is .1 and the probability of occurrence of s2 is .3. The expected value of the best alternative is A)  4.5. B)  69.5. C)  7.5. D)  9.0." class="answers-bank-image d-inline" rel="preload" > ​ The probability of occurrence of s1 is .1 and the probability of occurrence of s2 is .3.
The expected value of the best alternative is

Accepted Answer

A)   4.5.
B)   69.5.
C)   7.5.
D)   9.0.

Question 4

A posterior probability associated with sample information is of the form​

Accepted Answer

A)   ​P(a sample outcome | a state of nature) .
B)   ​P(a state of nature | a sample outcome) .
C)   ​P(a decision alternative | a sample outcome) .
D)   ​P(a sample outcome | a decision alternative) .

Question 5

Below you are given a profit payoff table involving two decision alternatives and three states of nature. 1 will occur is .2; the probability that s2 will occur is .6. The expected value of perfect information equals A)  12. B)  9. C)  37. D)  29." class="answers-bank-image d-inline" rel="preload" > ​ The probability that s1 will occur is .2; the probability that s2 will occur is .6.
The expected value of perfect information equals

Accepted Answer

A)   12.
B)   9.
C)   37.
D)   29.

Question 6

Nodes indicating points where a decision is made are known as _____ nodes.

Accepted Answer

A)   decision
B)   chance
C)   unconditional
D)   conditional

Question 7

Below you are given a profit payoff table involving three decision alternatives and three states of nature. 1 is .1 and the probability of occurrence of s2 is .3. The expected value of perfect information is A)  18.1. B)  11.7. C)  51. D)  37." class="answers-bank-image d-inline" rel="preload" > ​ The probability of occurrence of s1 is .1 and the probability of occurrence of s2 is .3.
The expected value of perfect information is

Accepted Answer

A)   18.1.
B)   11.7.
C)   51.
D)   37.

Question 8

The expected value of information that would tell the decision maker exactly which state of nature is going to occur is the _____ information.

Accepted Answer

A)   expected value of sample
B)   expected value of perfect
C)   revised state-of-nature
D)   updated research

Exam 19: Decision Analysis

A posterior probability associated with sample information is of the form

Correct Answer
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Nodes indicating points where a decision is made are known as _____ nodes.

Correct Answer
verified

Below you are given a profit payoff table involving three decision alternatives and three states of nature. The probability of occurrence of s₁ is .1 and the probability of occurrence of s₂ is .3. The expected value of perfect information is

Correct Answer
verified

Application of Bayes' theorem enables us to compute the

Correct Answer
verified

The expected value of information that would tell the decision maker exactly which state of nature is going to occur is the _____ information.

Correct Answer
verified

Prior probabilities are the probabilities of the states of nature _____ information.

Correct Answer
verified

Below you are given a profit payoff table involving two decision alternatives and three states of nature. The probability that s₁ will occur is .2; the probability that s₂ will occur is .6. The expected value of perfect information equals

Correct Answer
verified

Below you are given a profit payoff table involving three decision alternatives and three states of nature. The probability of occurrence of s₁ is .1 and the probability of occurrence of s₂ is .3. The expected value of the best alternative is

Correct Answer
verified

Exam 19: Decision Analysis

A posterior probability associated with sample information is of the form​

Correct AnswerverifiedShow Answer

Nodes indicating points where a decision is made are known as _____ nodes.

Correct AnswerverifiedShow Answer

Below you are given a profit payoff table involving three decision alternatives and three states of nature. ​ The probability of occurrence of s1 is .1 and the probability of occurrence of s2 is .3. The expected value of perfect information is

Correct AnswerverifiedShow Answer

Application of Bayes' theorem enables us to compute​ the

Correct AnswerverifiedShow Answer

The expected value of information that would tell the decision maker exactly which state of nature is going to occur is the _____ information.

Correct AnswerverifiedShow Answer

Prior probabilities are the probabilities of the states of nature _____ information.

Correct AnswerverifiedShow Answer

Below you are given a profit payoff table involving two decision alternatives and three states of nature. ​ The probability that s1 will occur is .2; the probability that s2 will occur is .6. The expected value of perfect information equals

Correct AnswerverifiedShow Answer

Below you are given a profit payoff table involving three decision alternatives and three states of nature. ​ The probability of occurrence of s1 is .1 and the probability of occurrence of s2 is .3. The expected value of the best alternative is

Correct AnswerverifiedShow Answer

A posterior probability associated with sample information is of the form

Correct Answer
verified

Correct Answer
verified

Below you are given a profit payoff table involving three decision alternatives and three states of nature. The probability of occurrence of s₁ is .1 and the probability of occurrence of s₂ is .3. The expected value of perfect information is

Correct Answer
verified

Application of Bayes' theorem enables us to compute the

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Below you are given a profit payoff table involving two decision alternatives and three states of nature. The probability that s₁ will occur is .2; the probability that s₂ will occur is .6. The expected value of perfect information equals

Correct Answer
verified

Below you are given a profit payoff table involving three decision alternatives and three states of nature. The probability of occurrence of s₁ is .1 and the probability of occurrence of s₂ is .3. The expected value of the best alternative is

Correct Answer
verified