1 Decision making under uncertainty involves the use of prob

1.         Decision making under uncertainty involves the use of probabilities.

            a.         True                 b.         False

2.         The expected monetary value (EMV) always results in the same \'best alternative\' as expected utility.

            a.         True                 b.         False

3.         The expected value of perfect information (EVPI) indicates an upper limit on the amount a decision maker should be willing to spend to obtain perfect information.

            a.         True                 b.         False

4.         The dependent variable in a linear programming problem is the total value of the objective function.

            a.         True                 b.         False

5.         One characteristic of linear programming is there are two or more (possibly infinite) ways an allocation of resources decision may be made.

            a.         True                 b.         False

6.         The constraints in linear programming may be viewed as uncontrollable or exogenous variables.

            a.         True                 b.         False

7.         In linear programming a slack variable represents the amount of unused resources.

            a.         True                 b.         False

8.           Time series forecasting methods use past chronological data to predict future behavior.

            a.         True                 b.         False

9.         It does not matter how far into the future a forecast is projected from the actual time series, provided good data are available.

            a.         True                 b.         False

10.       The Mean Squared Error, MSE, is not a measure of forecasting model reliability.

            a.         True                 b.         False

Solution

                        1. Decision making under uncertainty involves the use of probabilities.

         a.         True                 b.         False

Answer     True

2. The expected monetary value (EMV) always results in the same \'best alternative\' as expected utility

a.         True                 b.         False

Answer   False

3.   The expected value of perfect information (EVPI) indicates an upper limit on the amount a decision maker should be willing to spend to obtain perfect information.

             a.         True                 b.         False

                          Answer     True

4.         The dependent variable in a linear programming problem is the total value of the objective function.

                                   a.         True                 b.         False

                            Answer   False

5.   One characteristic of linear programming is there are two or more (possibly infinite) ways an allocation of resources decision may be made.

            a.         True                 b.         False

                           Answer    True

6. The constraints in linear programming may be viewed as uncontrollable or exogenous variables.

                 a.         True                 b.         False

                          Answer   True

                        7. In linear programming a slack variable represents the amount of unused resources.

              a.         True                 b.         False

                          Answer   True

8.   Time series forecasting methods use past chronological data to predict future behavior.

             a.         True                 b.         False

                           Answer    True

9. It does not matter how far into the future a forecast is projected from the actual time series, provided good data are available.

          a.         True                 b.         False

                           Answer    True

                 10.       The Mean Squared Error, MSE, is not a measure of forecasting model reliability.

                 a.         True                 b.         False

                          Answer .   False

            a.         True                 b.         False