2

1. Which of the following statements are FALSE (choose all the false statements. Choosing True statements will incur negative marking)

   Regression model is an example of aprobabilisticand descriptive model

   In the problem solving process, once we test the results, we candirectlyimplement the solution.

   Finding the basic statistics (like mean), correlation, drawing pivot tables and charts are examples of descriptive models.

   Models are simplified versions of a situation that we want to analyze/study.

   We only input variables that we can control in our model. Variables that we cannot control cannot be part of a decision model.

   Sensitivity analysis helps us find the optimal solution

4 points

QUESTION 3

1. Refer to the pay-off matrix consisting of profit information below. Based on Average pay-off strategy, the investment to be chosen is(mention the investmentletter) and the corresponding average pay-off is(keep two decimals).

   	Scenario A	Scenario B	Scenario C
   Investment A	5000	8000	-2000
   Investment B	7600	-1000	6500
   Investment C	0	2000	10500

4 points

QUESTION 4

1. Refer to the pay-off matrix consisting of profit information below. Calculate the Opportunity Loss if you choose Investment C and Scenario A occurs.

   	Scenario A	Scenario B	Scenario C
   Investment A	8000	10000	-2000
   Investment B	12000	-1000	3000
   Investment C	0	2000	5000

4 points

QUESTION 5

1. Refer to the pay-off matrix consisting of profit information below. Based on Aggressive strategy, the investment to be chosen is(mention the investmentletter) and the corresponding best pay-off is(Mention the corresponding number as it appears in the pay-off table).

   	Scenario A	Scenario B	Scenario C
   Investment A	8000	10000	-2000
   Investment B	12000	-1000	3000
   Investment C	0	2000	5000