1a) In a problem of decision making under risk, probabilities are given to _________.

decision alternatives

states of nature

1b) Which statement is correct about the meaning of EMV (expected monetary value)?

		An alternatives EMV is the average payoff of that alternative.
		An alternatives EMV is the total payoff of that alternative.
		An EMV is the average payoff of all alternatives.
		An EMV is the total payoff of all alternatives.

1c) Which is the correct interpretation of EVPI?

		EVPI is the value of the information to the information provider (consulting firm for example) who sells the information.
		EVPI is the value of the information to the information user (decision maker for example) who uses the information (in decision making).
		EVPI is the expected monetary value of an alternative.

1d) EVPI is the difference between EV_wPI and EV_w/oPI.

True

False