BANA - Last Chapter Exam 1,2,3 (Final
Exam) 2025/2026 Exam Questions and
Answers | 100% Solved
Chapter 15 focuses on - 🧠 ANSWER ✔✔decision analysis
an uncertain future event affecting the consequence associated with a
decision is known as - 🧠 ANSWER ✔✔chance event
A(n) ________ refers to the result obtained when a decision alternative is
chosen and a chance event occurs - 🧠 ANSWER ✔✔outcome
_______ are possible outcomes for events that affect the consequences
associated with a decision alternative - 🧠 ANSWER ✔✔states of nature
no more than one state of nature can occur at a given time for a chance
event. this indicates that the states of nature are defined such that they are
- 🧠 ANSWER ✔✔mutually exclusive
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,the states of nature are defined so that they are ______. this means that at
least one state of nature must occur at a given time for a chance event - 🧠
ANSWER ✔✔collectively exhaustive
an intersection or junction point of a decision tree is called a(n) - 🧠
ANSWER ✔✔node
lines showing the alternatives from decision nodes and the outcomes from
chance nodes are called - 🧠 ANSWER ✔✔branches
the _______ approach evaluates each decision alternative in terms of the
best payoff that can occur - 🧠 ANSWER ✔✔optimistic
choosing a decision alternative that maximizes the minimum profit is a
feature of the _____ approach - 🧠 ANSWER ✔✔conservative
the amount of loss (lower profit or higher cost) from not making the best
decision for each state of nature is known as - 🧠 ANSWER ✔✔opportunity
loss
the minimax regret approach is - 🧠 ANSWER ✔✔neither purely optimistic
nor purely conservative
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, the weighted average of the payoffs for a chance node is known as the - 🧠
ANSWER ✔✔expected value
new information obtained through research or experimentation that enables
an updating or revision of the state-of-nature probabilities is known as - 🧠
ANSWER ✔✔sample information
____ refer to the probabilities of the sates of nature after revising the prior
probabilities based on sample information - 🧠 ANSWER ✔✔posterior
probabilities
______ is the study of the possible payoffs and probabilities associated
with a decision alternative or a decision strategy in the face of uncertainty -
🧠 ANSWER ✔✔risk analysis
the study of how changes in the probability assessments for the states of
nature or changes in payoffs affect the recommended decision alternative
is known as - 🧠 ANSWER ✔✔sensitivity analysis
______ refers to the probability of one event, given the known outcome of a
(possibly) related event - 🧠 ANSWER ✔✔conditional probability
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER:
619652435. TERMS OF USE. PRIVACY STATEMENT. ALL RIGHTS RESERVED 3
Exam) 2025/2026 Exam Questions and
Answers | 100% Solved
Chapter 15 focuses on - 🧠 ANSWER ✔✔decision analysis
an uncertain future event affecting the consequence associated with a
decision is known as - 🧠 ANSWER ✔✔chance event
A(n) ________ refers to the result obtained when a decision alternative is
chosen and a chance event occurs - 🧠 ANSWER ✔✔outcome
_______ are possible outcomes for events that affect the consequences
associated with a decision alternative - 🧠 ANSWER ✔✔states of nature
no more than one state of nature can occur at a given time for a chance
event. this indicates that the states of nature are defined such that they are
- 🧠 ANSWER ✔✔mutually exclusive
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER:
619652435. TERMS OF USE. PRIVACY STATEMENT. ALL RIGHTS RESERVED 1
,the states of nature are defined so that they are ______. this means that at
least one state of nature must occur at a given time for a chance event - 🧠
ANSWER ✔✔collectively exhaustive
an intersection or junction point of a decision tree is called a(n) - 🧠
ANSWER ✔✔node
lines showing the alternatives from decision nodes and the outcomes from
chance nodes are called - 🧠 ANSWER ✔✔branches
the _______ approach evaluates each decision alternative in terms of the
best payoff that can occur - 🧠 ANSWER ✔✔optimistic
choosing a decision alternative that maximizes the minimum profit is a
feature of the _____ approach - 🧠 ANSWER ✔✔conservative
the amount of loss (lower profit or higher cost) from not making the best
decision for each state of nature is known as - 🧠 ANSWER ✔✔opportunity
loss
the minimax regret approach is - 🧠 ANSWER ✔✔neither purely optimistic
nor purely conservative
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER:
619652435. TERMS OF USE. PRIVACY STATEMENT. ALL RIGHTS RESERVED 2
, the weighted average of the payoffs for a chance node is known as the - 🧠
ANSWER ✔✔expected value
new information obtained through research or experimentation that enables
an updating or revision of the state-of-nature probabilities is known as - 🧠
ANSWER ✔✔sample information
____ refer to the probabilities of the sates of nature after revising the prior
probabilities based on sample information - 🧠 ANSWER ✔✔posterior
probabilities
______ is the study of the possible payoffs and probabilities associated
with a decision alternative or a decision strategy in the face of uncertainty -
🧠 ANSWER ✔✔risk analysis
the study of how changes in the probability assessments for the states of
nature or changes in payoffs affect the recommended decision alternative
is known as - 🧠 ANSWER ✔✔sensitivity analysis
______ refers to the probability of one event, given the known outcome of a
(possibly) related event - 🧠 ANSWER ✔✔conditional probability
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER:
619652435. TERMS OF USE. PRIVACY STATEMENT. ALL RIGHTS RESERVED 3
