$3-3$ What is an alternative? What is a state of nature?

$3-4$ Discuss the differences among decision making under certainty, decision making under risk, and decision making under uncertainty.

$3-5$ What techniques are used to solve decision$-$making problems under uncertainty? Which technique results in an optimistic decision? Which technique results in a pessimistic decision?

$3-6$ Define opportunity loss. What decision$-$making criteria are used with an opportunity loss table?

$3-7$ What information should be placed on a decision tree?

$3-8$ Describe how you would determine the best decision using the EMV criterion with a decision tree.

$3-9$ What is the difference between prior and posterior probabilities?

$3-10$ What is the purpose of Bayesian analysis? Describe how you would use Bayesian analysis in the decision$-$making process.

$3-11$ What is the EVSI? How is this computed?

$3-12$ How is the efficiency of sample information computed?

$3-13$ What is the overall purpose of utility theory?

$3-14$ Briefly discuss how a utility function can be assessed. What is a standard gamble, and how is it used in determining utility values?

$3-15$ How is a utility curve used in selecting the best decision for a particular problem?