45 a decision analysis problem consists of a 5 elements b 4

45. a decision analysis problem consists of:

a. 5 elements

b. 4 elements

c. 3 elements

d. either a or b

e. none of the above

46. in decision making with probabilities of the states of nature, we choose the best decision alternative based on:

a. the highest expected value of the decision alternatives

b. the lowest expected value of the decision alternatives

c. the bayes\' theorem

d. either a or c

e. none of the above

47. in deicison making with sample information, what is the most relevant to your decision strategies?

a. the expected value of the decision alternatives

b. the decision tree

c. the expected value of sample information

d. either b or c

e. none of the above

48. the objective function of the ordinary least squares( OLS) method is

a. the total sum of squares

b. the sum of squares due to regression

c. the sum of squares due to error

d. either b or c

e. none of the above

Solution

45: The correct option is c. A decision analysis problem consists of 3 elements, Decision Alternatives, States of Nature and Payoffs.

46: The correct option is c. In decision making with probabilities of the states of nature, we choose the best decision alternative based on the bayes\' theorem.

47: The correct option is a. In deicison making with sample information, the most relevant to your decision strategies is the expected value of the decision alternatives.

48: The correct option is c. The objective function of the ordinary least squares( OLS) method is the sum of squares due to error.