MGMT 4340 American Graduate Decision Making under Uncertainty Questions 3.
The number of bids for a contract received by a local authority follows the probability distribution below:
No. of bids
The probability that the authority will receive at least 2 bids is:
An investor will make a profit next week if either a share rises in price on the London stock market by the end of trading next Monday or if the value of the US dollar rises against the Euro by the end of trading next Tuesday. The probability of the first event is 0.2 and the probability of the second is 0.3. Both events can be considered to be independent. The probability that the investor will make a profit next week is:
The following table shows the results of a survey of the attitudes of potential purchasers towards a proposed new design for a product. The customers were categorized according to their ages.
Would not purchase
Total number of
Aged under 50
Aged 50 or over
Assuming that the survey is reliable, p(would purchase the product | aged under 50) is equal to:
With reference to the table in Question 6, p(aged under 50 | would purchase the product) is equal to:
Which of these statements about the expected monetary value (EMV) criterion is not true?
A) It only takes into account attributes that are measured in monetary terms
B) It gives the average (mean) payoff that a decision maker would receive if the decision was repeated a large number of times
C) It assumes that an increase in the payoff of a decision from $1,000 to $2,000 will be as attractive to the decision maker as an increase from $101,000 to $102,000
D) It will always reflect the preferences of a risk averse decision maker
A manager choosing a marketing strategy for a new product indicates that she would be indifferent between achieving a 6% market share for certain within three years or adopting a risky strategy. This would yield either the best possible market share within three years of 11% with a probability of 0.7 and the worst possible market share of 1% with a probability of 0.3. Assuming that utilities are measured on a 0 to 1 scale, her utility for a 6% market share is:
D) Impossible to determine based on the information given
When mutual utility independence exists in a decision problem it:
A) Means that a decision can be based on expected monetary values
B) Implies that the decision maker is risk neutral in relation to all attributes
C) Enables single attribute utility functions to be assessed separately for each attribute
D) Means that multi-attribute utilities can be obtained simply by adding utilities obtained for the different attributes
A decision maker is facing a decision involving two attributes and will be using the following formula to obtain multi-attribute utilities: u(x1, x2) = k1u(x1) + k2u(x2) + k3u(x1)u(x2) where x1 = the level of attribute 1 and x2 = the level of attribute 2. The value of k1 can be obtained by identifying when the decision maker will be indifferent between a lottery which will either result in both attributes being at their best values, or both at their worst values and an option where it is certain that:
A) Attribute 1 will be at its worst value and attribute 2 at its best value
B) Both attributes will be at their worst values
C) Attribute 1 will be at its best value and attribute 2 at its worst value
D) Both attributes will be at their best values
In a decision problem involving two attributes the difference between the worst and best levels of attribute 1 is much more important to a decision maker than the corresponding difference on attribute 2. Given the formula displayed in Question 19, which of these statements is true?
A) No inferences relating to k1, k2 or k3 can be discerned from the information provided
B) k2 will be larger than k1
C) k3 will be larger than k1
D) k1 will be larger than k2
Why Choose Us
Top quality papers
We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.
Professional academic writers
We have hired a team of professional writers experienced in academic and business writing. Most of them are native speakers and PhD holders able to take care of any assignment you need help with.
If you feel that we missed something, send the order for a free revision. You will have 10 days to send the order for revision after you receive the final paper. You can either do it on your own after signing in to your personal account or by contacting our support.
All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.
Original & confidential
We use several checkers to make sure that all papers you receive are plagiarism-free. Our editors carefully go through all in-text citations. We also promise full confidentiality in all our services.
24/7 Customer Support
Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.
Try it now!
How it works?
Follow these simple steps to get your paper done
Place your order
Fill in the order form and provide all details of your assignment.
Proceed with the payment
Choose the payment system that suits you most.
Receive the final file
Once your paper is ready, we will email it to you.
No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.
You are welcome to choose your academic level and the type of your paper. Our academic experts will gladly help you with essays, case studies, research papers and other assignments.
Admission help & business writing
You can be positive that we will be here 24/7 to help you get accepted to the Master’s program at the TOP-universities or help you get a well-paid position.
Editing your paper
Our academic writers and editors will help you submit a well-structured and organized paper just on time. We will ensure that your final paper is of the highest quality and absolutely free of mistakes.
Revising your paper
Our academic writers and editors will help you with unlimited number of revisions in case you need any customization of your academic papers