Quantitative Analysis for Management, 13/e

Self-Test

• Before taking the self-test, refer to the learning objectives at the beginning of the chapter, the notes in the margins, and the glossary at the end of the chapter.

• Use the key at the back of the book (see Appendix H) to correct your answers.

• Restudy pages that correspond to any questions that you answered incorrectly or material you feel uncertain about.

1. In decision theory terminology, a course of action or a strategy that may be chosen by a decision maker is called

   1. a payoff.

   2. an alternative.

   3. a state of nature.

   4. none of the above.

2. In decision theory, probabilities are associated with

   1. payoffs.

   2. alternatives.

   3. states of nature.

   4. none of the above.

3. If probabilities are available to the decision maker, then the decision-making environment ...