Module A

7 September 2022

4.7 (114 reviews)

7 test answers

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decision table

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a tabular means of analyzing decision alternatives and states of nature

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maximax

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a criterion that finds an alternative that maximizes the maximum outcome

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maximin

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a criterion that finds an alternative that maximizes the minimum outcome

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equally likely

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a criterion that assigns equal probability to each state of nature

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EMV

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the expected payout or value of a variabel that has different possible states of nature, each with an associated probability

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EVPI

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the difference b/w the payoff under perfect information and the payoff under risk

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decision tree

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a graphical means of analyzing decision alternatives and states of nature