Description:  Price 1.00 USD Question 1 If two events are not mutually exclusive, then P(A or B) = P(A) + P(B) Question 2 Seventy two percent of all observations fall within 1 standard deviation of the mean if the data is normally distributed. Question 3 Probability trees are used only to compute conditional probabilities. Question 4 The maximin approach involves choosing the alternative with the highest or lowest payoff. Question 5 The minimin criterion is optimistic. Question 6 The minimax regret criterion maximizes the minimum regret. Question 7 The Hurwicz criterion is a compromise between the minimax and minimin criteria. Question 8 Assume that it takes a college student an average of 5 minutes to find a parking spot in the main parking lot. Assume also that this time is normally distributed with a standard deviation of 2 minutes. Find the probability that a randomly selected college student will take between 2 and 6 minutes to find a parking spot in the main parking lot. 0.6247 0.6247 Question 9 83 83 Question 10 The chisquare test is a statistical test to see if an observed data fit a _________. particular probability distribution All of the above Question 11 The maximin criterion results in the maximum of the minimum payoffs maximum of the minimum payoffs Question 12 A business owner is trying to decide whether to buy, rent, or lease office space and has constructed the following payoff table based on whether business is brisk or slow. The maximin strategy is: Lease Lease Question 13 A group of friends are planning a recreational outing and have constructed the following payoff table to help them decide which activity to engage in. Assume that the payoffs represent their level of enjoyment for each activity under the various weather conditions. Weather Cold Warm Rainy S1 S2 S3 Bike: A1 10 8 6 Hike: A2 14 15 2 Fish: A3 7 8 9 If the group chooses to minimize their maximum regret, what activity will they choose? A3 Any of the above Question 14 A business owner is trying to decide whether to buy, rent, or lease office space and has constructed the following payoff table based on whether business is brisk or slow. The maximax strategy is: Buy Buy Question 15 0.0402 0.0400 .0401 .0402 .0400 Question 16 A brand of television has a lifetime that is normally distributed with a mean of 7 years and a standard deviation of 2.5 years. What is the probability that a randomly chosen TV will last more than 8 years? Write your anwsers with two places after the decimal. 0.3447 0.3445 .3446 .3447 .3445 Question 17 A business owner is trying to decide whether to buy, rent, or lease office space and has constructed the following payoff table based on whether business is brisk or slow. If the probability of brisk business is .40, what is the numerical maximum expected value? Question 18 The quality control manager for ENTA Inc. must decide whether to accept (a1), further analyze (a2) or reject (a3) a lot of incoming material. Assume the following payoff table is available. Historical data indicates that there is 30% chance that the lot is poor quality (s1), 50 % chance that the lot is fair quality (s2) and 20% chance that the lot is good quality (s3). What is the numerical value of the minimax regret? Question 19 A manager has developed a payoff table that indicates the profits associated with a set of alternatives under 2 possible states of nature. Alt S1 S2 1 10 2 2 2 8 3 8 5 What is the highest expected value? Assume that the probability of S2 is equal to 0.4. Question 20 A group of friends are planning a recreational outing and have constructed the following payoff table to help them decide which activity to engage in. Assume that the payoffs represent their level of enjoyment for each activity under the various weather conditions. Weather Cold Warm Rainy S1 S2 S3 Bike: A1 10 8 6 Hike: A2 14 15 2 Fish: A3 7 8 9 If the probabilities of cold weather (S1), warm weather (S2), and rainy weather (S3) are 0.2, 0.4, and 0.4, respectively what is the EVPI for this situation?
