Question 7: Which of the following is TRUE regarding the use of simulation?
1. It allows time-compression in testing major policy decisions
2. It always yields optimal solutions
3. It is always very easy to build a simulation model
4. It may interfere with real-world systems
4 points
Question 8: What is the EMV for Option 1 in the following decision table?
|
States of Nature
|
|
|
Alternatives
|
S1
|
S2
|
|
p
|
.3
|
.7
|
|
Option 1
|
15,000
|
20,000
|
|
Option 2
|
10,000
|
30,000
|
| |
|
17,500
|
| |
|
15,000
|
| |
|
17,000
|
| |
|
18,500
|