Ivy Software -Business Math &
Statistics: EXAM comprehensive
questions and verified answers|
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QUESTIONS AND VERIFIED
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event node C) event node, event node, D) None of the above - ANSWER//D)
None of the above It would actually be decision node (which building to paint),
decision node (what to do with the painting) True/False: the Expected
Monetary Value (EMV) is a number based on averaging - ANSWER//True
Marcie wants to invest her money in the stock of one of two companies:
Writeoff, a maker of erasers, or Outatwon Books, a publisher of travel guides.
She has a 0.7 probability of making $10,000 and a 0.3 probability of losing
$25,000 with Writeoff stock, and a 0.45 probability of making $3000 and a
0.55 probability of losing $500 with Outatown Books stock. If she does nothing,
she will neither gain nor lose money. Should she invest in Writeoff stock,
Outatown stock or do nothing? - ANSWER//Invest in Outatown stock
Referring to Illustration 9 in Chapter 5, it shows the decision tree for three
projects in which the AOK company can invest (they can only invest in one
and must invest). In which one of the three projects should AOK invest, based
on EMV? A) Project A B) Project B C) Project C D) None of the above, they
are all equal. - ANSWER//C) Project C True/False: the EMV of an alternative
with 0.5 probability of making $500 is definitely $250. - ANSWER//False You
cannot calculate the EMV with just this information. You need to know all
possible returns, not just one.All possible outcomes should equal one, but you
only have 0.5 of the information required. Which of the following nodes could
be combined into one? A) If Jay decides to go to lunch, he has to decide
where to go B) After Jay decides to go out to lunch, he has to make sure he
doesnt have a meeting and, if he doesnt, he has to decide where to go out to
lunch C) Jay finds out whether he has a meeting, then he will decide D) None
of the above - ANSWER//A) If Jay decides to go to lunch, he has to decide
where to go A has two decision modes, but B has a decision mode and an
event mode, and C has an event node and a decision mode. So only A has
two of the same and can be combined. Tim has not been doing well in finance
class. His professor tells him to write up a case analysis for her in order to
pass the class. He can still pass the class without the write-up, just like he still
can fail with it, since the final exam is coming up. Which of these decisions
would have a vertical line at the end of the decision node: A) Do nothing (dont
write the case analysis) B) Pass the final exam C) Write the case analysis D)
None of the above - ANSWER//D) None of the above True/False: A decision
node is shown as a square. - ANSWER//True True/False: Branches are
, connected by squares only. - ANSWER//False A market research survey is
available for $10,000. Using a decision tree analysis, it is found that the
expected monetary value with the survey is $65,000. The expected monetary
value with no survey is $62,000. What is the expected value of the information
from this sample? a. $3,000 b. $10,000 c. $13,000 d. -$7,000 e. none of the
above - ANSWER// Expected Monetary Value (EMV) utilizes Select one: a.
binomial distribution b. median values c. averages d. none of the above -
ANSWER//c. averages True/False: A decision tree is a graphic representation
of a problem. - ANSWER//True True/False: The decision maker determines
which branch to follow from an event node. - ANSWER//False True/False:
Branches may be connected by circles and squares. - ANSWER//True The
Miramar Company is going to introduce one of three new products: a wrench,
a hammer, or a nut remover. The market conditions (favorable, stable, or
unfavorable) will determine the profit or loss the company realizes. A market
research firm will do a survey to predict future market conditions. The results
will indicate either positive or negative market conditions. There is a 0.60
probability of a positive report given favorable market conditions, a 0.30
probability of a positive report given stable market conditions, and a 0.10
probability of a positive report given unfavorable conditions. The survey will
cost $2,000. The first node of this decision tree will be a a. chance node with
Favorable, Stable, and Unfavorable as branches b. decision node with
Wrench, Hammer, and Nut remover as branches c. decision node with buy
survey and do not buy survey as branches d. chance node with favorable and
unfavorable market - ANSWER//c. decision node with buy survey and do not
buy survey as branches The value of an event node is a. the sum of the
values on the branches emanating from it. b. the value of the next node on the
branch the decision maker decides to take. c. the value of the branch the
decision maker decides to take. d. the expected value of the branches
emanating from it. - ANSWER//d. the expected value of the branches
emanating from it. True/False: A point of uncertainty is represented by a circle.
- ANSWER//True True/False: Standard deviation does not measure spread or
dispersion. - ANSWER//False True/False: A Bernoulli Trial is an event with
two possible outcomes. - ANSWER//True In January 20XX, the American
worker spent an average of 77 hours logged onto the Internet while at work
(CNBC, March 15, 20XX), with a standard deviation of 20 hours. What
percentage of workers spent more than 100 hours logged on? - ANSWER//.87
(77-100)/20 = -23/20 = -1.5 (lookup on table to get .12507). .12507 = .13
True/False: The construction of a decision tree with subsequent evaluation
eliminates the uncertainty in a decision making process - ANSWER//False - It
recognizes the uncertainty in the possible consequences, but does not
eliminate them True/False: Decomposition is the process of making a decision
after having analyzed the parts of that decision - ANSWER//False -
Decomposition is the process of breaking a decision down into parts and
analyzing alternatives and their consequences True/False: The alternatives
on the branches of a decision tree must be mutually exclusive and equally
likely - ANSWER//False - The alternatives on the branches of a decision tree
must be mutually exclusive and collectively exhaustive. True/False: A decision
tree is constructed from left to right with the event and decision nodes in
chronological order - ANSWER//True - Left to right to represent the order in
which the decision maker will encounter them True/False: The event node is
Statistics: EXAM comprehensive
questions and verified answers|
FREQUENTLY MOST TESTED
QUESTIONS AND VERIFIED
SOLUTIONS/GET IT 100%
ACCURATE!!
event node C) event node, event node, D) None of the above - ANSWER//D)
None of the above It would actually be decision node (which building to paint),
decision node (what to do with the painting) True/False: the Expected
Monetary Value (EMV) is a number based on averaging - ANSWER//True
Marcie wants to invest her money in the stock of one of two companies:
Writeoff, a maker of erasers, or Outatwon Books, a publisher of travel guides.
She has a 0.7 probability of making $10,000 and a 0.3 probability of losing
$25,000 with Writeoff stock, and a 0.45 probability of making $3000 and a
0.55 probability of losing $500 with Outatown Books stock. If she does nothing,
she will neither gain nor lose money. Should she invest in Writeoff stock,
Outatown stock or do nothing? - ANSWER//Invest in Outatown stock
Referring to Illustration 9 in Chapter 5, it shows the decision tree for three
projects in which the AOK company can invest (they can only invest in one
and must invest). In which one of the three projects should AOK invest, based
on EMV? A) Project A B) Project B C) Project C D) None of the above, they
are all equal. - ANSWER//C) Project C True/False: the EMV of an alternative
with 0.5 probability of making $500 is definitely $250. - ANSWER//False You
cannot calculate the EMV with just this information. You need to know all
possible returns, not just one.All possible outcomes should equal one, but you
only have 0.5 of the information required. Which of the following nodes could
be combined into one? A) If Jay decides to go to lunch, he has to decide
where to go B) After Jay decides to go out to lunch, he has to make sure he
doesnt have a meeting and, if he doesnt, he has to decide where to go out to
lunch C) Jay finds out whether he has a meeting, then he will decide D) None
of the above - ANSWER//A) If Jay decides to go to lunch, he has to decide
where to go A has two decision modes, but B has a decision mode and an
event mode, and C has an event node and a decision mode. So only A has
two of the same and can be combined. Tim has not been doing well in finance
class. His professor tells him to write up a case analysis for her in order to
pass the class. He can still pass the class without the write-up, just like he still
can fail with it, since the final exam is coming up. Which of these decisions
would have a vertical line at the end of the decision node: A) Do nothing (dont
write the case analysis) B) Pass the final exam C) Write the case analysis D)
None of the above - ANSWER//D) None of the above True/False: A decision
node is shown as a square. - ANSWER//True True/False: Branches are
, connected by squares only. - ANSWER//False A market research survey is
available for $10,000. Using a decision tree analysis, it is found that the
expected monetary value with the survey is $65,000. The expected monetary
value with no survey is $62,000. What is the expected value of the information
from this sample? a. $3,000 b. $10,000 c. $13,000 d. -$7,000 e. none of the
above - ANSWER// Expected Monetary Value (EMV) utilizes Select one: a.
binomial distribution b. median values c. averages d. none of the above -
ANSWER//c. averages True/False: A decision tree is a graphic representation
of a problem. - ANSWER//True True/False: The decision maker determines
which branch to follow from an event node. - ANSWER//False True/False:
Branches may be connected by circles and squares. - ANSWER//True The
Miramar Company is going to introduce one of three new products: a wrench,
a hammer, or a nut remover. The market conditions (favorable, stable, or
unfavorable) will determine the profit or loss the company realizes. A market
research firm will do a survey to predict future market conditions. The results
will indicate either positive or negative market conditions. There is a 0.60
probability of a positive report given favorable market conditions, a 0.30
probability of a positive report given stable market conditions, and a 0.10
probability of a positive report given unfavorable conditions. The survey will
cost $2,000. The first node of this decision tree will be a a. chance node with
Favorable, Stable, and Unfavorable as branches b. decision node with
Wrench, Hammer, and Nut remover as branches c. decision node with buy
survey and do not buy survey as branches d. chance node with favorable and
unfavorable market - ANSWER//c. decision node with buy survey and do not
buy survey as branches The value of an event node is a. the sum of the
values on the branches emanating from it. b. the value of the next node on the
branch the decision maker decides to take. c. the value of the branch the
decision maker decides to take. d. the expected value of the branches
emanating from it. - ANSWER//d. the expected value of the branches
emanating from it. True/False: A point of uncertainty is represented by a circle.
- ANSWER//True True/False: Standard deviation does not measure spread or
dispersion. - ANSWER//False True/False: A Bernoulli Trial is an event with
two possible outcomes. - ANSWER//True In January 20XX, the American
worker spent an average of 77 hours logged onto the Internet while at work
(CNBC, March 15, 20XX), with a standard deviation of 20 hours. What
percentage of workers spent more than 100 hours logged on? - ANSWER//.87
(77-100)/20 = -23/20 = -1.5 (lookup on table to get .12507). .12507 = .13
True/False: The construction of a decision tree with subsequent evaluation
eliminates the uncertainty in a decision making process - ANSWER//False - It
recognizes the uncertainty in the possible consequences, but does not
eliminate them True/False: Decomposition is the process of making a decision
after having analyzed the parts of that decision - ANSWER//False -
Decomposition is the process of breaking a decision down into parts and
analyzing alternatives and their consequences True/False: The alternatives
on the branches of a decision tree must be mutually exclusive and equally
likely - ANSWER//False - The alternatives on the branches of a decision tree
must be mutually exclusive and collectively exhaustive. True/False: A decision
tree is constructed from left to right with the event and decision nodes in
chronological order - ANSWER//True - Left to right to represent the order in
which the decision maker will encounter them True/False: The event node is
