Mat 540 Quiz 2

 Question 1
2 out of 2 points


If two events are not mutually exclusive, then P(A or B) = P(A) + P(B)

Answer
Selected
Answer: False
Correct Answer:
False




 Question 2
2 out of 2 points


Seventy two percent of all observations fall within 1 standard deviation of the mean if
the data is normally distributed.

Answer
Selected
Answer: False
Correct Answer:
False




 Question 3
2 out of 2 points


Probability trees are used only to compute conditional probabilities.

Answer
Selected
Answer: False
Correct Answer:
False




 Question 4
2 out of 2 points


The maximin approach involves choosing the alternative with the highest or lowest
payoff.

Answer

, Selected
Answer: False
Correct Answer:
False




 Question 5
2 out of 2 points


The minimin criterion is optimistic.

Answer
Selected
Answer: True
Correct Answer:
Tru
e




 Question 6
2 out of 2 points


Using the minimax regret criterion, we first construct a table of
regrets. Subsequently, for each possible decision, we look across the states of
nature and make a note of the maximum regret possible for that decision. We
then pick the decision with the largest maximum regret.

Answer
Selected
Answer: False
Correct Answer:
False




 Question 7
2 out of 2 points


The Hurwicz criterion is a compromise between the minimax and minimin criteria.

Answer
Selected
Answer: False
Correct Answer:
False