1.The text presents which two analytic tools to help with decisionmaking?

A.decision tables and decision networks

B.decision networks and decision derivations

C.decision tables and decision trees

D.decision networks and decision trees

2.What is a course of action or strategy that may be chosen by a decisionmaker?

A.mission

B.state of nature

C.mode

D.alternative

3.What are listed across the top of a decisiontable?

A.states of nature

B.alternatives

C.outcome probabilities

D.conditional values

4.Even though independent gasoline stations have been having adifficult time, Ian Langella has been thinking about starting his own independent gasoline station. Ian's problem is to decide how large his station should be. The annual returns will depend on both the size of his station and a number of marketing factors related to the oil industry and demand for gasoline. After acareful analysis, Ian developed the following table:

Size of First Station Good Fair Poor

Small 40,000 18,000 -8,000

Medium 90,000 27,000 -22,000

Large 105,000 27,500 -36,000

Very Large 320,000 26,000 -180,000

For example, if Ian constructs a small station and the marketis good, he will realize a profit of$40,000.

a) Using the decision making under uncertainty with the criterion of Maximax.

The appropriate Size of First Station should be _____________

The value of the return under this decision is $ _____________

b) Using the decision making under uncertainty with the criterion of Maximin

The appropriate Size of First Station should be .____________

The value of the return under this decision is $________________

C) Using the decision making under uncertainty with the criterion of Equally Likely.

The appropriate Size of First Station should be .___________

The value of the return under this decision is $_______________

5.Andrew Thomas, a sandwich vendor at HardRock Cafe'sannual Rockfest, created a table of conditional values for the variousalternatives (stockingdecision) and states ofnature (sizeof crowd):

Alternatives Big Average Small

Large Stock 18,000 12,000 -1,500

Average Stock 16,000 10,000 6,500

Small Stock 9,600 8,100 4,000

The probabilities associated with the states of nature are 0.30 for abig demand, 0.45 for anaverage demand, and 0.25 for a small demand.

a) The alternative that provides Andrew Thomas the greatest expected monetary valueis ____________

The EMV of this decision is $ ____________

b) The expected value of perfect informationEVPI for AndrewThomas = $______________