Assignment:
Q1. Identify the six steps in the decision process.
Q2. Give an example of a good decision you made that resulted in a bad outcome. Also give an example of a bad decision you made that had a good outcome. Why was each decision good or bad?
Q3. What is the equally likely decision model?
Q4. Discuss the differences between decision making under certainty, under risk, and under uncertainty.
Q1. What is a decision tree?
Q2. Explain how decision trees might be used in several of the 10 OM decisions.
Q3. What is the expected value of perfect information (EVPI)?
Q4. What is the expected value with perfect information (EVwPI)?
Q5. Identify the five steps in analyzing a problem using a decision tree.
Q1. Why are the maximax and maximin strategies considered to be optimistic and pessimistic, respectively?
Q2. The expected value criterion is considered to be the rational criterion on which to base a decision. Is this true? Is it rational to consider risk?
Q3. When are decision trees most useful?
Provide complete and step by step solution for the question and show calculations and use formulas.