Operation Research (3151910) MCQs

MCQs of  Decision Theory

Showing 11 to 15 out of 15 Questions
11.

The expected value of perfect information is equal to

(a)

EPPI - Min (EMV)

(b)

EPPI + Max (EMV)

(c)

Max. (EOL

(d)

None of thees

Answer:

Option (a)

12.

Essential characteristics of a decision model are

(a)

states of nature

(b)

decision alternatives

(c)

payoff

(d)

all of these

Answer:

Option (d)

13.

While using Hurwitz criterion, the coefficient of realism (a)

(a)

represents the degree of optimism

(b)

represents the degree of pessimism

(c)

 is the probability of a state of nature

(d)

none of these

Answer:

Option (a)

14.

The decision-making criterion that should be used to achieve maximum long-term payoff is

(a)

 EOL

(b)

EMV

(c)

Hurwicz

(d)

Maximax

Answer:

Option (b)

15.

The probability of selling at least an additional unit of an item to justify the stocking of that unit is given by

(a)

p < /C/(/C + IP)

(b)

p > IC/(IC + IP)

(c)

p = IC/(IC + IP)

(d)

p = IPI (IC + IP)

Answer:

Option (c)

Showing 11 to 15 out of 15 Questions