Operation Research (2171901) MCQs

MCQs of Decision Theory

Showing 11 to 15 out of 15 Questions
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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
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