Test Bank For Introduction to Management Science: A Modeling and Case Studies Approach With

Test Bank For Introduction to Management Science:

A Modeling and Case Studies Approach With
Spreadsheets 4th edition by Frederick Hillier

To download the complete and accurate content document, go to:

https://testbankbell.com/download/test-bank-for-introduction-to-management-science-
a-modeling-and-case-studies-approach-with-spreadsheets-4th-edition-by-frederick-hill
ier/

Visit TestBankBell.com to get complete for all chapters

Chapter 09 CD Supplement - Decision Analysis

Chapter 09 CD Supplement
Decision Analysis

True / False Questions

1. The maximax approach is an optimistic strategy.

True False

2. An example of maximax decision making is a person buying lottery tickets in hopes of a

very big payoff.
True False

3. The maximin approach involves choosing the alternative with the highest payoff.
True False

4. The maximin criterion is an optimistic criterion.

True False

5. The maximin approach involves choosing the alternative that has the "best worst" payoff.
True False

6. A weakness of the maximin approach is that it loses some information.

True False

7. The minimax regret criterion is a conservative criterion.

True False

9s-1
Chapter 09 CD Supplement - Decision Analysis

8. The maximum likelihood criterion ignores the payoffs for states of nature other than the
most likely one.
True False

9. The Laplace criterion treats states of nature as being equally likely.

True False

10. The equally likely criterion assigns a probability of 0.5 to each state of nature.
True False

Multiple Choice Questions

11. Which of the following is not a criterion for decision making?

A. EVPI.
B. Maximin.
C. Maximax.
D. Equally likely.
E. Maximum likelihood.

12. Determining the worst payoff for each alternative and choosing the alternative with the
"best worst" is the criterion called:
A. minimin.
B. maximin.
C. maximax.
D. maximum likelihood.
E. Bayes decision rule.

9s-2
Chapter 09 CD Supplement - Decision Analysis

13. Determining the average payoff for each alternative and choosing the alternative with the
highest average is the criterion called:
A. minimin.
B. maximin.
C. equally likely.
D. maximum likelihood.
E. Bayes decision rule.

14. The maximin criterion refers to:

A. minimizing the maximum return.
B. maximizing the minimum return.
C. choosing the alternative with the highest payoff.
D. choosing the alternative with the minimum payoff.
E. None of the above.

15. The maximax strategy is:

A. Buy.
B. Rent.
C. Lease.
D. High.
E. Low.

9s-3
Chapter 09 CD Supplement - Decision Analysis

16. The maximin strategy is:

A. Buy.
B. Rent.
C. Lease.
D. High.
E. Low.

17. The realism strategy with a pessimism-optimism index of 0.5 is:

A. Buy.
B. Rent.
C. Lease.
D. High.
E. Low.

18. The minimax regret strategy is:

A. Buy.
B. Rent.
C. Lease.
D. High.
E. Low.

19. The maximum likelihood strategy is:

A. Buy.
B. Rent.
C. Lease.
D. High.
E. Low.

20. The equally likely strategy is:

A. Buy.
B. Rent.
C. Lease.
D. High.
E. Low.

9s-4
Chapter 09 CD Supplement - Decision Analysis

21. The maximax strategy is:

A. small.
B. medium.
C. medium large.
D. large.
E. extra large.

22. The maximin strategy is:

A. small.
B. medium.
C. medium large.
D. large.
E. extra large.

23. The realism strategy with a pessimism-optimism index of 0.5 is:

A. small.
B. medium.
C. medium large.
D. large.
E. extra large.

9s-5
Chapter 09 CD Supplement - Decision Analysis

24. The minimax regret strategy is:

A. small.
B. medium.
C. medium large.
D. large.
E. extra large.

25. The maximum likelihood strategy is:

A. small.
B. medium.
C. medium large.
D. large.
E. extra large.

26. The equally likely strategy is:

A. small.
B. medium.
C. medium large.
D. large.
E. extra large.

9s-6
Chapter 09 CD Supplement - Decision Analysis

27. The maximax strategy is:

A. A.
B. B.
C. C.
D. D.
E. E.

28. The maximin strategy is:

A. A.
B. B.
C. C.
D. D.
E. E.

29. The realism strategy with a pessimism-optimism index of 0.5 is:

A. A.
B. B.
C. C.
D. D.
E. E.

30. The minimax regret strategy is:

A. A.
B. B.
C. C.
D. D.
E. E.

31. The maximum likelihood strategy is:

A. A.
B. B.
C. C.
D. D.
E. E.

9s-7
Chapter 09 CD Supplement - Decision Analysis

32. The equally likely strategy is:

A. A.
B. B.
C. C.
D. D.
E. E.

9s-8
Chapter 09 CD Supplement - Decision Analysis

Chapter 09s CD Supplement Decision Analysis Answer Key

True / False Questions

1. The maximax approach is an optimistic strategy.

TRUE

2. An example of maximax decision making is a person buying lottery tickets in hopes of a

very big payoff.
TRUE

3. The maximin approach involves choosing the alternative with the highest payoff.
FALSE

4. The maximin criterion is an optimistic criterion.

FALSE

5. The maximin approach involves choosing the alternative that has the "best worst" payoff.
TRUE

6. A weakness of the maximin approach is that it loses some information.

TRUE

7. The minimax regret criterion is a conservative criterion.

TRUE

9s-9
Chapter 09 CD Supplement - Decision Analysis

8. The maximum likelihood criterion ignores the payoffs for states of nature other than the
most likely one.
TRUE

9. The Laplace criterion treats states of nature as being equally likely.

TRUE

10. The equally likely criterion assigns a probability of 0.5 to each state of nature.
FALSE

Multiple Choice Questions

11. Which of the following is not a criterion for decision making?

A. EVPI.
B. Maximin.
C. Maximax.
D. Equally likely.
E. Maximum likelihood.

12. Determining the worst payoff for each alternative and choosing the alternative with the
"best worst" is the criterion called:
A. minimin.
B. maximin.
C. maximax.
D. maximum likelihood.
E. Bayes decision rule.

9s-10
Chapter 09 CD Supplement - Decision Analysis

13. Determining the average payoff for each alternative and choosing the alternative with the
highest average is the criterion called:
A. minimin.
B. maximin.
C. equally likely.
D. maximum likelihood.
E. Bayes decision rule.

14. The maximin criterion refers to:

A. minimizing the maximum return.
B. maximizing the minimum return.
C. choosing the alternative with the highest payoff.
D. choosing the alternative with the minimum payoff.
E. None of the above.

15. The maximax strategy is:

A. Buy.
B. Rent.
C. Lease.
D. High.
E. Low.

9s-11
Chapter 09 CD Supplement - Decision Analysis

16. The maximin strategy is:

A. Buy.
B. Rent.
C. Lease.
D. High.
E. Low.

17. The realism strategy with a pessimism-optimism index of 0.5 is:

A. Buy.
B. Rent.
C. Lease.
D. High.
E. Low.

18. The minimax regret strategy is:

A. Buy.
B. Rent.
C. Lease.
D. High.
E. Low.

19. The maximum likelihood strategy is:

A. Buy.
B. Rent.
C. Lease.
D. High.
E. Low.

20. The equally likely strategy is:

A. Buy.
B. Rent.
C. Lease.
D. High.
E. Low.

9s-12
Chapter 09 CD Supplement - Decision Analysis

21. The maximax strategy is:

A. small.
B. medium.
C. medium large.
D. large.
E. extra large.

22. The maximin strategy is:

A. small.
B. medium.
C. medium large.
D. large.
E. extra large.

23. The realism strategy with a pessimism-optimism index of 0.5 is:

A. small.
B. medium.
C. medium large.
D. large.
E. extra large.

9s-13
Chapter 09 CD Supplement - Decision Analysis

24. The minimax regret strategy is:

A. small.
B. medium.
C. medium large.
D. large.
E. extra large.

25. The maximum likelihood strategy is:

A. small.
B. medium.
C. medium large.
D. large.
E. extra large.

26. The equally likely strategy is:

A. small.
B. medium.
C. medium large.
D. large.
E. extra large.

9s-14
Chapter 09 CD Supplement - Decision Analysis

27. The maximax strategy is:

A. A.
B. B.
C. C.
D. D.
E. E.

28. The maximin strategy is:

A. A.
B. B.
C. C.
D. D.
E. E.

29. The realism strategy with a pessimism-optimism index of 0.5 is:

A. A.
B. B.
C. C.
D. D.
E. E.

30. The minimax regret strategy is:

A. A.
B. B.
C. C.
D. D.
E. E.

31. The maximum likelihood strategy is:

A. A.
B. B.
C. C.
D. D.
E. E.

9s-15
Test Bank For Introduction to Management Science: A Modeling and Case Studies Approach With

Chapter 09 CD Supplement - Decision Analysis

32. The equally likely strategy is:

A. A.
B. B.
C. C.
D. D.
E. E.

9s-16

Visit TestBankBell.com to get complete for all chapters