WGU D771 Quantitative Literacy (MATH
101) Final Exam (OA) Comprehensive
Study Guide 2026 Update 100% Correct.
maximin criterion - correct answer a very conservative and pessimistic approach. A
technique for decision making to choose the decision that maximizes the worst payoff,
in other words, the worst possible loss for one choice is a smaller number than the
least possible loss of the other choices.
minimin criterion - correct answer the alternative that represents the minimum of all
of the minimum alternative costs.
minimax criterion - correct answer minimizes the possible loss by selecting the
alternative with the minimum possible loss for a worst case outcome. Minimax is the
minimum of all of the maximums.
maximax criterion - correct answer a more optimistic approach, more appropriate for
a risk taker. The approach maximizes the best payoff. This approach focuses on the
large possible gains, and fails to focus on the possible losses. Not frequently used by a
business because this method could bankrupt a company if losses were not evaluated.
Steps - evaluating risk and payoffs for decision options - correct answer 1. create a
table in which the decision options are organized.
Format: payoff table
2.
payoff table - correct answer (format) the options are listed vertically and the decision
space is explored horizontally.
-lists positive or negative returns (payoffs) with all possible combinations of
alternative actions, under the decision maker's control, and external conditions which
are not under the decision maker's control
-shows the financial returns minus the costs for each alternative under consideration
calculated expected value - correct answer probability * value
Calculate - alternative's expected value - correct answer (alternative value *
probability of occurrence) + (alternative value * probability of occurrence)
, WGU D771 Quantitative Literacy (MATH
101) Final Exam (OA) Comprehensive
Study Guide 2026 Update 100% Correct.
decision point - correct answer a point where one of several alternatives can be
selected.
state-of-nature node - correct answer a possible outcome that would be out of the
decision maker's control, such as the weather or the state of the economy.
Excel QM - correct answer (add-in) can solve decision analysis problems without
probabilities, as well as solve problems using expected value criteria.
network diagrams - correct answer help decision makers allocate resources and
schedules to ensure a project is completed on time and within the approved budget.
Characteristics - Project - correct answer The endeavor is outside of the routine or
operational activities.
The assignment is a temporary endeavor.
The goal has a start and end date.
Every task in the project is specific to the objective or goal of the project.
crash - correct answer (action regarding a project) a method that will help the
manager make decisions about the allocation of additional resources to work the
necessary activities to meet the deadline. Only applies to critical path activities. Once
the crash costs have been determined, the activities are crashed starting with the
order of least cost per time period to highest cost per time period. It is necessary for a
decision maker to have resource and cost strategies to avoid delays on any activities
in the critical path.
operational activity - correct answer considered the day to day functions of the
organization. These activities are used to keep the business operational and can
include accounting transactions, customer service, inventory processing, and any
other tasks that are completed day in and day out.
project activity - correct answer a specific undertaking which involves many focused
tasks that are intended only for the completion of the project.
, WGU D771 Quantitative Literacy (MATH
101) Final Exam (OA) Comprehensive
Study Guide 2026 Update 100% Correct.
activity - correct answer a unique unit of the project which can be described within
limits of time.
work breakdown structure (WBS) - correct answer created to breakdown all of the
activities necessary to complete the project.
predecessor - correct answer a task that must be completed before the next step can
be started.
successor - correct answer the task that comes after the predecessor.
Steps - Estimate project time - correct answer Identify all of the activities or work that
must be done to complete the project.
Put the activities in the order that they need to be completed, noting any significant
work that must be completed before another activity can begin.
Determine who needs to be involved in the activity time estimates, including groups
that will be completing the work involved.
Estimate the time involved to complete each activity in the project. Build a buffer into
the estimates for vacations, sick leave, meetings, and emergencies. Add the duration of
each activity in a project to determine project duration.
Program Evaluation and Review Technique (PERT) - correct answer uses a statistical
distribution called the beta distribution. This is sometimes referred to as the three-
point estimation. The beta distribution estimating method is a powerful tool that helps
predict project and activity duration while incorporating risk and uncertainty in the
estimate. Three specific time estimates are used in the beta distribution calculation:
Optimistic -The best case scenario, or minimum length of time, to complete an activity.
Let A stand for Optimistic.
101) Final Exam (OA) Comprehensive
Study Guide 2026 Update 100% Correct.
maximin criterion - correct answer a very conservative and pessimistic approach. A
technique for decision making to choose the decision that maximizes the worst payoff,
in other words, the worst possible loss for one choice is a smaller number than the
least possible loss of the other choices.
minimin criterion - correct answer the alternative that represents the minimum of all
of the minimum alternative costs.
minimax criterion - correct answer minimizes the possible loss by selecting the
alternative with the minimum possible loss for a worst case outcome. Minimax is the
minimum of all of the maximums.
maximax criterion - correct answer a more optimistic approach, more appropriate for
a risk taker. The approach maximizes the best payoff. This approach focuses on the
large possible gains, and fails to focus on the possible losses. Not frequently used by a
business because this method could bankrupt a company if losses were not evaluated.
Steps - evaluating risk and payoffs for decision options - correct answer 1. create a
table in which the decision options are organized.
Format: payoff table
2.
payoff table - correct answer (format) the options are listed vertically and the decision
space is explored horizontally.
-lists positive or negative returns (payoffs) with all possible combinations of
alternative actions, under the decision maker's control, and external conditions which
are not under the decision maker's control
-shows the financial returns minus the costs for each alternative under consideration
calculated expected value - correct answer probability * value
Calculate - alternative's expected value - correct answer (alternative value *
probability of occurrence) + (alternative value * probability of occurrence)
, WGU D771 Quantitative Literacy (MATH
101) Final Exam (OA) Comprehensive
Study Guide 2026 Update 100% Correct.
decision point - correct answer a point where one of several alternatives can be
selected.
state-of-nature node - correct answer a possible outcome that would be out of the
decision maker's control, such as the weather or the state of the economy.
Excel QM - correct answer (add-in) can solve decision analysis problems without
probabilities, as well as solve problems using expected value criteria.
network diagrams - correct answer help decision makers allocate resources and
schedules to ensure a project is completed on time and within the approved budget.
Characteristics - Project - correct answer The endeavor is outside of the routine or
operational activities.
The assignment is a temporary endeavor.
The goal has a start and end date.
Every task in the project is specific to the objective or goal of the project.
crash - correct answer (action regarding a project) a method that will help the
manager make decisions about the allocation of additional resources to work the
necessary activities to meet the deadline. Only applies to critical path activities. Once
the crash costs have been determined, the activities are crashed starting with the
order of least cost per time period to highest cost per time period. It is necessary for a
decision maker to have resource and cost strategies to avoid delays on any activities
in the critical path.
operational activity - correct answer considered the day to day functions of the
organization. These activities are used to keep the business operational and can
include accounting transactions, customer service, inventory processing, and any
other tasks that are completed day in and day out.
project activity - correct answer a specific undertaking which involves many focused
tasks that are intended only for the completion of the project.
, WGU D771 Quantitative Literacy (MATH
101) Final Exam (OA) Comprehensive
Study Guide 2026 Update 100% Correct.
activity - correct answer a unique unit of the project which can be described within
limits of time.
work breakdown structure (WBS) - correct answer created to breakdown all of the
activities necessary to complete the project.
predecessor - correct answer a task that must be completed before the next step can
be started.
successor - correct answer the task that comes after the predecessor.
Steps - Estimate project time - correct answer Identify all of the activities or work that
must be done to complete the project.
Put the activities in the order that they need to be completed, noting any significant
work that must be completed before another activity can begin.
Determine who needs to be involved in the activity time estimates, including groups
that will be completing the work involved.
Estimate the time involved to complete each activity in the project. Build a buffer into
the estimates for vacations, sick leave, meetings, and emergencies. Add the duration of
each activity in a project to determine project duration.
Program Evaluation and Review Technique (PERT) - correct answer uses a statistical
distribution called the beta distribution. This is sometimes referred to as the three-
point estimation. The beta distribution estimating method is a powerful tool that helps
predict project and activity duration while incorporating risk and uncertainty in the
estimate. Three specific time estimates are used in the beta distribution calculation:
Optimistic -The best case scenario, or minimum length of time, to complete an activity.
Let A stand for Optimistic.
