DSCI Quiz 1 Verified And Accurate Exam Questions For Guaranteed Pass.

What is the first and last step of the modeling process? - correct answer 1. Define the problem, what is the objective? 2. Implement and evaluate the results. What are the recommendations? List 2 out of the three models in chapter 1 - correct answer 1.Iconic 2.Analog 3.Mathematical What are the most frequently used models - correct answer Linear programing List three methods from chapter two that assign improbabilities to experimental outcomes - correct answer 1. Classical-gambeling 2.Realitive frequency 3.Subjective What is the purpose of Bay's theorem - correct answer To update prior probabilities to posterior probabilities Method used to compare posterior probabilities Develop conditional probabilities from marginal ones What are the two major classifications of distribution of a random variable in ch 3? - correct answer Discrete, continuous What is the difference between grouped and ungrouped data - correct answer Grouped data has probabilities List two measures of dispersion - correct answer Variance, Range List the 4 measures of data - correct answer Centrality Dispersion Skewness Peakness List a couple characteristics of Binomial Prob. distribution - correct answer 1. The experiment consists of n identical trials 2, the trials are independent 3 two outcomes are possible on each trial, a success and a failure What are two assumptions of the Poisson probability distribution? - correct answer 1. the probability of an occurrence of the event is the same for any two intervals of equal length 2. the occurrence or nonoccurence of the event in any interval is independent of the occurrence or nonoccurence in any other interval What is the relationship between Poisson and exponential distributions - correct answer They are reciprocal List three out of 5 decisions under uncertainty/risk - correct answer 1 Maximin 2Minimax 3 criterion of realism `What is the decision making under uncertainty that combines the maximax and maximin - correct answer Heurwitz alpha What is the most popular approach to making a decision under uncertainty - correct answer Minimax regret What is the significance of EVwoPI - correct answer The best a company can do on its own What is the significance of EVPI` - correct answer The max about of money you would pay for additional info What is the advantage of conditional loss - correct answer you can use relative payoffs What is an advantage of Marginal analysis - correct answer You don't need a payoff table What are two disadvantages of Marginal analysis - correct answer 1. it only works for dollars 2. it will not give you an alternative course of action What is the significance of EVwPI - correct answer The best a company can do with a perfect forecast What is the difference between EVwPI-EVwoPI - correct answer EVPI- expected value of perfect into What is the significance/ reason for finding EVPI - correct answer Maximum money to pay for perfect info What is the significance of EVSI - correct answer Best a company can do with sample info How much a company will pay for additional sample info What is the relationship between EVwoSI and EVwoPI - correct answer they are the same What is the purpose of efficiency - correct answer to know if data from one sample is better from another The ratio of ESI to EVPI as a % is called? - correct answer Efficiency What is the value of perfect efficiency? - correct answer 1 or 100% What is the definition of utility - correct answer It is a measure of the total worth of a [articular outcome, it reflects the decision maker's attitude toward a collection of factors such as profit, loss, and risk What is the definition of Lottery? - correct answer It is a hypothetical investment alternative with a probability of p of obtaining the best payoff and a prob. of 1-p of obtaining the worst payoff What is the first and last step for determining the utility of money - correct answer 1. develop a payoff table by using monetary values 2. apply the expected utility approach to the utility table developed in step 4 and select the decision alternative with the highest expected utility Define a risk taker - correct answer a decision maker who would choose a lottery over a better guaranteed payoff`` What are two characteristics of a risk neutral decision maker - correct answer 1. the utility function can be drawn as a straight line connecting the best and worse points 2. the expected utility approach and the expected value approach applied to monetary payoffs result in the same action Utility Function Graph, what are on the lines, axis - correct answer i. Y axis- utility ii. X axis- monetary value iii. Risk neutral line- 45 degree line from origin iv. Risk avoider- concave down