Ch 5 Ivy Software Business Math & Stats
UPDATED ACTUAL Questions and
CORRECT Answers
decomposition - CORRECT ANSWER - breaking a decision down into manageable parts
to come to a conclusion, integral to decision analysis. steps 1. define problem 2. analyze
alternatives and consider possible results of each alternative 3. decision
decision tree - CORRECT ANSWER - graph rep of problem, possible consequences and
attributes of each consequence, each alternative is a branch of a tree, branches connected by open
circles or squares
event nodes - CORRECT ANSWER - rep by circles, rep points of uncertainty where 1/2 or
more things will happen out of control of decision maker.
decision nodes - CORRECT ANSWER - rep by squares, decision must be made among 2
or more alternatives.
construction of a decision tree with subsequent evaluation eliminates uncertainty in a decision
making process, true or false - CORRECT ANSWER - false decision tree used to
graphically rep alt decisions in a problem, recognizing uncertainty in possible consequences but
not eliminating it
decomposition process of making decision after having analyzed parts of that decision, true or
false - CORRECT ANSWER - false, decomp process breaking decision into parts and
analyzing alternatives and consequences, separate from decision making which takes place after
process of decomp is complete)
alternates on branches of a decision tree must be mutually exclusive and equally likely, true or
false - CORRECT ANSWER - false, must be mutually exclusive and collectively
exhaustive, not necessarily equally likely when prob is assigned by them
UPDATED ACTUAL Questions and
CORRECT Answers
decomposition - CORRECT ANSWER - breaking a decision down into manageable parts
to come to a conclusion, integral to decision analysis. steps 1. define problem 2. analyze
alternatives and consider possible results of each alternative 3. decision
decision tree - CORRECT ANSWER - graph rep of problem, possible consequences and
attributes of each consequence, each alternative is a branch of a tree, branches connected by open
circles or squares
event nodes - CORRECT ANSWER - rep by circles, rep points of uncertainty where 1/2 or
more things will happen out of control of decision maker.
decision nodes - CORRECT ANSWER - rep by squares, decision must be made among 2
or more alternatives.
construction of a decision tree with subsequent evaluation eliminates uncertainty in a decision
making process, true or false - CORRECT ANSWER - false decision tree used to
graphically rep alt decisions in a problem, recognizing uncertainty in possible consequences but
not eliminating it
decomposition process of making decision after having analyzed parts of that decision, true or
false - CORRECT ANSWER - false, decomp process breaking decision into parts and
analyzing alternatives and consequences, separate from decision making which takes place after
process of decomp is complete)
alternates on branches of a decision tree must be mutually exclusive and equally likely, true or
false - CORRECT ANSWER - false, must be mutually exclusive and collectively
exhaustive, not necessarily equally likely when prob is assigned by them
