Multiple Choice Questions (7 points each) 1. Sensitivity analysis is required because A. payoffs and probabilities are estimates B. most decision will affect employees C. expected payoffs are sensitive to the time value of money D. it's the second step in the decision model E. with the passage of time, small decisions get bigger 2. *V for profits ($000) The minimax regret strategy would be: A. A B. B C. C D. D E. E 3. A point which is outside of the lower control limit on an R-chart: A. is an indication that no cause of variation is present B. should be ignored because it signifies better than average quality C. should be investigated because an assignable cause of variation might be present D. should be ignored unless another point is outside that limit E. is impossible since the lower limit is always zero