The______________________ represents the expected payoff we will realize if we have prior knowledge ...

The______________________ represents the expected payoff we will realize if we have prior knowledge about which state of nature will occur.
 
  A) expected value of perfect information (EVPI)
  B) expected value under risk (EVUR)
  C) expected monetary value (EMV)
  D) expected value under certainty (EVUC)

Q. 2

The _______________________ provides us with an upper limit for how much we should pay for additional information to improve our decision.
 
  A) expected value of perfect information (EVPI)
  B) expected value under risk (EVUR)
  C) expected monetary value (EMV)
  D) expected value under certainty (EVUC)

Q. 3

The ____________________ is the expected monetary value that corresponds to the best alternative when making a decision under risk.
 
  A) expected value of perfect information (EVPI)
  B) expected value under risk (EVUR)
  C) expected monetary value (EMV)
  D) expected value under certainty (EVUC)

Q. 4

The __________________ is the average of the payoffs associated with a particular alternative weighted with the probabilities for each state of nature.
 
  A) expected value of perfect information (EVPI)
  B) expected value under risk (EVUR)
  C) expected monetary value (EMV)
  D) expected value under certainty (EVUC)

Q. 5

A beach community on a barrier island has three real estate companies that list rental properties by location which are classified as ocean-front, beach-block, or mid-island.
 
  The following contingency table shows the number of properties listed by each company along with their location. CompanyLocation Diller Ferguson KerrOcean-front 6 6 7Beach-block 10 9 9Mid-island 24 15 14The expected number of listings for Kerr that are a mid-island location is ________.A) 5.7
  B) 8.4
  C) 15.9
  D) 21.2

Q. 6

Debbie is a buyer for a retail chain and needs to decide what order quantity to place for women's coats for the upcoming winter season.
 
  Below is a payoff table, in thousands of dollars, for various order quantities (1 = lowest, 4 = highest) and demand levels for the winter coats. DemandOrder Size Fair Good ExcellentOrder Quantity 1 0 40 110Order Quantity 2 160 90 370Order Quantity 3 330 170 670Order Quantity 4 640 240 880If the Debbie uses the minimax regret criterion, which order size will she place?A) Order Quantity 1
  B) Order Quantity 2
  C) Order Quantity 3
  D) Order Quantity 4

Q. 7

AT&T would like to investigate if brand of smartphone and income level are independent variables. The following contingency table shows the number of customers who own three brands of smartphones along with their income level.
 
  SmartphoneIncome Level iPhone Samsung MotorolaLess than 50,000 15 20 1550,000-100,000 15 50 25More than 100,000 10 20 30The expected number of customers who own an iPhone and earn more than 100,000 is ________.A) 10.0
  B) 12.0
  C) 17.5
  D) 22.5