\f\f\f\f\f\f\f\f1.The text presents which two analytic tools to help with decision making? A.decision tables and decision networks B.decision tables and decision trees C.decision networks and decision trees D.decision networks and decision derivations 2.What is a course of action or strategy that may be chosen by a decision maker? A.mode B.alternative C.mission D.state of nature 3.What are listed across the top of a decision table? A.outcome probabilities B.conditional values C.states of nature D.alternatives 4.Even though independent gasoline stations have been having a difficult 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 a careful analysis, Ian developed the following table: For example, if Ian constructs a small station and the market is 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 $ (enter your answer as a whole number). 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 $ . (enter your answer as a whole number). 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 $ (enter your answer as a whole number). 5.Andrew Thomas, a sandwich vendor at Hard Rock Cafe's annual Rockfest, created a table of conditional values for the various alternatives (stocking decision) and states of nature (size of crowd): The probabilities associated with the states of nature are 0.30 for a big demand, 0.45 for an average demand, and 0.25 for a small demand. a) The alternative that provides Andrew Thomas the greatest expected monetary value is . The EMV of this decision is $ (enter your answer as a whole number). b) The expected value of perfect information EVPI for Andrew Thomas = $ (enter your answer as a whole number). 6.The following payoff table provides profits based on various possible decision alternatives and various levels of demand at Robert Klassan's print shop: The probability of low demand is 0.45, whereas the probability of high demand is 0.55. a) The Decision that provides Robert the greatest expected monetary value (EMV) is Alternative The EMV for this decision is $ . (enter your answer as a whole number). b) The expected value with perfect information (EVwPI) = $ (enter your answer as a whole number). c) The expected value of perfect information (EVPI) for Robert = $ number). (enter your answer as a whole 7.Zhu Manufacturing is considering the introduction of a family of new products. Longterm demand for the product group is somewhat predictable, so the manufacturer must be concerned with the risk of choosing a process that is inappropriate. Faye Zhu is VP of operations. She can choose among batch manufacturing or custom manufacturing, or she can invest in group technology. Zhu won't be able to forecast demand accurately until after she makes the process choice. Demand will be classified into four compartments: poor, fair, good, and excellent. The table below indicates the payoffs (profits) associated with each process/demand combination, as well as the probabilities of each longterm demand level: a) The alternative that provides Zhu the greatest expected monetary value (EMV) is The EMV for this decision is $ . (enter your answer as a whole number). b) The amount that Faye Zhu would be willing to pay for a forecast that would accurately determine the level of demand in the future = $ (enter your answer as a whole number). 8.Deborah Hollwager, a concessionaire for the Amway Center in Orlando, has developed a table of conditional values for the various alternatives (stocking decision) and states of nature (size of crowd): Probabilities associated with the states of nature are 00.25 for a large crowd, 0.55 for an average crowd, and 0.20 for a small crowd. a) The alternative that provides Deborah the greatest expected monetary value (EMV) is The EMV for this decision is $ . (enter your answer as a whole number). b) For Deborah, the expected value of perfect information ( EVPI) = $ (enter your answer as a whole number). 9.Dwayne Whitten, president of Whitten Industries, is considering whether to build a manufacturing plant in north Texas. His decision is summarized in the following table: a) The correct decision tree for Dwayne is shown in Figure (all payoffs are in thousands). b) To maximize the return, Dwayne's decision should be the following alternative: . c) For Dwayne, the expected value of perfect information (EVPI) = $ whole number). . (enter your answer as a 10.A decision tree should be used in lieu of a decision table when there A.are states of nature that are mutually exclusive and collectively exhaustive. B.is no uncertainty. C.are sequential decisions and states of nature. D.is complete uncertainty. 11.What is the most commonly used criterion for decision tree analysis? A.EMV B.EVwPI C.EVPI D.Maximin