Decision-Making Tools MCQs
Decision-Making Tools MCQs
Our team has conducted extensive research to compile a set of Decision-Making Tools MCQs. We encourage you to test your Decision-Making Tools knowledge by answering these multiple-choice questions provided below.
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1: Which technique is used for making sequential decisions that allows the decision maker to map ?
A. Physical simulation
B. Decision tree
C. Total time coefficient value
D. Learning curves
2: Which of the correct statements about Decisions under certainty?
A. Scenario falls between the two extremes of certainty and uncertainty
B. Decisions made when the state of nature is known
C. When state state of nature is known then decision made
D. Both b & c
3: _______ scenario falls between the two extremes of certainty and uncertainty
A. Decisions under risk
B. Decisions under uncertainty
C. Expected regret
D. None of these
4: Decisions under uncertainty decision maker cannot even make an educated guess about the chances, or probabilities, of their occurring
A. True
B. False
5: The expected value of regret associated with each decision is also known as
A. Expected regret
B. Expected value
C. Electric Vehicle
D. Both b & c
6: EV stands for(in operational management )
A. Electric Vehicle
B. Expected value
C. Except vehicle
D. None of these
7: The difference between the expected value of the decision with perfect information and the expected value of the decision without perfect information is known as
A. Expected value of perfect information
B. Laplace criterion
C. Expected value
D. Decisions under certainty
8: Which of the following might be viewed as an optimistic decision criterion?
A. Hurwicz criterion
B. Maximin
C. Maximax
D. Minimax
9: Which of the correct statements about Laplace criterion?
A. A decision-making approach used when the probabilities of the states of nature are unknown and assumed as equal
B. A decision-making approach used when the decision maker is optimistic about the future events and their outcomes
C. Both a & b
D. None of these
10: Maximax criterion identifies the maximum payoff associated with each decision, and chooses the maximum of the maximum payoffs
A. True
B. False
11: Maximin criterion is a decision-making approach used when the________impact of making the wrong decision is so high
A. Negative
B. Positive
C. Both positive & negative
D. None of these
12: Minimax regret criterion a ______ approach that attempts to minimize the regret, or loss, associated with making an optimal decision
A. Decision-making
B. Postivitive
C. Negative
D. ALl of these
13: Payoff is the positive or negative values (monetary or nonmonetary) a decision maker places on each combination of actual decisions and states of nature
A. True
B. False
14: ______ determine how sensitive a decision alternative is to changes in the probability values of the states of nature
A. Sensitivity analysis
B. States of nature
C. Payoff
D. None of these
15: States of nature an take place that are beyond the control of the decision maker
A. True
B. False
16: ______ offers both individuals and organizations a framework, specific methodologies, and tools to identify and analyze uncertain events, risk factors, and possible outcomes to reach optimal decisions.
A. Sensitivity analysis
B. Expected value of perfect information
C. Decision analysis
D. Quantitative estimation
17: A ______ will provide a range of values over which one decision alternative is preferred to others.
A. Minimax criterion
B. Maximin criterion
C. Hurwicz criterion
D. Sensitivity analysis
18: The ______ is a decision-making approach that attempts to find a compromise between the two extremes posed by the pessimistic maximin criterion and the optimistic maximax criterion.
A. Laplace criterion
B. Maximin criterion
C. Hurwicz criterion
D. Minimax criterion
19: In ______ the decision maker is optimistic about the future events and their outcomes.
A. Laplace criterion
B. Maximax criterion
C. Hurwicz criterion
D. Minimax criterion
20: ______ is the positive or negative values (monetary or nonmonetary) a decision maker places on each combination of actual decisions and states of nature.
A. Expected value of perfect task
B. Expected value
C. Payoff
D. Minimax criterion
21: The ______ incorporates the concept of remorse into decisions made under uncertainty.
A. Laplace criterion
B. Maximin criterion
C. Hurwicz criterion
D. Minimax regret criterion
22: The ______ is the weighted average of the values of all of possible outcomes of the decision.
A. Expected value
B. Maximin value
C. Absolute deviation
D. Variance
23: ______ is not a good method to use when the underlying states of nature are not equally probable.
A. Laplace criterion
B. Maximin criterion
C. Hurwicz criterion
D. Minimax criterion
24: A decision maker may use the ______ when the negative impact of making the wrong decision is so high that he or she chooses that alternative that guarantees at least the minimum payoff.
A. Laplace criterion
B. Maximin criterion
C. Hurwicz criterion
D. Minimax criterion
25: ______ is the difference between the expected value of the decision with perfect information and the expected value of the decision without perfect information.
A. Expected value of perfect task
B. Expected value of perfect risk
C. Expected value of perfect distribution
D. Expected value of perfect information
26: ______ are future events or occurrences that can take place that are beyond the control of the decision maker.
A. States of nature
B. Decisions under certainty
C. Decisions under uncertainty
D. Decisions under risk
27: ______ is the art and science of formal decision making.
A. Sensitivity analysis
B. Expected value of perfect information
C. Decision analysis
D. Quantitative estimation
28: ______ is a technique used for making sequential decisions that allows the decision maker to visually map each possible decision alternative to determine the best decision.
A. Decision tree
B. Pareto chart
C. Gantt chart
D. Expected value graph
29: According to the ______, if the probabilities of the states of nature are unknown, we should assume they are equal, and the different decision alternatives should be evaluated using the expected value of their payoffs.
A. Laplace criterion
B. Maximin criterion
C. Hurwicz criterion
D. Minimax criterion
30: ______ is the potential that a decision made will lead to undesirable outcomes.
A. Learning
B. Loss
C. Averse decision
D. Risk
31: One goal of tqm is to focus on _____ rather than _____ of problems
A. Prevention; correction.
B. Lean manufacturing
C. Value stream map
D. Operations management
32: A person who organizes a business and then runs it is called a(n) _____.
A. Entrepreneur
B. Financial planner
C. Franchiser
D. Stockholder.
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