TEST BANK
Business Analytics,3rd Edition by
James R. Evans
Complete Chapter Test Bank
are included (Ch 1 to 16)
** Immediate Download
** Swift Response
** All Chapters included
,Table of Contents are given below
1.Introduction to Business Analytics
2.Database Analytics
3.Data Visualization
4.Descriptive Statistics
5.Probability Distributions and Data Modeling
6.Sampling and Estimation
7.Statistical Inference
8.Trendlines and Regression Analysis
9.Forecasting Techniques
10.Introduction to Data Mining
11.Spreadsheet Modeling and Analysis
12.Monte Carlo Simulation and Risk Analysis
13.Linear Optimization
14.Integer and Nonlinear Optimization
15.Optimization Analytics
16.Decision Analysis
,The test bank is organized in reverse order, with the last chapter displayed first, to ensure that all
chapters are included in this document. (Complete Chapters included Ch16-1)
Business Analytics, 3e (Evans)
Chapter 16: Decision Analysis
1) A(n) ________ is a matrix whose rows correspond to decisions and whose columns
correspond to events.
A) decision tree model
B) payoff table
C) utility function table
D) scoring model
Answer: B
Diff: 1
Blooms: Remember
Topic: Formulating Decision Problems
LO1: Construct a payoff table for a decision situation.
Use the information below to answer the following question(s).
Below is a payoff table that lists four mortgage options:
Outcome
Decision Rates Rise Rates Stable Rates Fall
1-year ARM $66,645 $43,650 $38,560
3-year ARM $62,857 $47,698 $42,726
5-year ARM $55,895 $50,894 $48,134
30-year fixed $52,276 $52,276 $52,276
2) What is the average payoff for the 3-year ARM?
A) $ 52,792
B) $ 45,212
C) $ 51,094
D) $ 55,278
Answer: C
Diff: 1
Blooms: Apply
AACSB: Analytic Skills
Topic: Decision Strategies with Outcome Probabilities
LO1: Apply average, aggressive, conservative, and opportunity-loss decision strategies for
problems involving minimization and maximization objectives.
3) What is the average payoff for the 5-year ARM?
A) $ 49,514
B) $ 52,015
C) $ 53,395
313
, 314 Chapter 16: Decision Analysis Business Analytics, 3e
D) $ 51,641
Answer: D
Diff: 1
Blooms: Apply
AACSB: Analytic Skills
Topic: Decision Strategies with Outcome Probabilities
LO1: Apply average, aggressive, conservative, and opportunity-loss decision strategies for
problems involving minimization and maximization objectives.
4) Which of the following decisions has the best average payoff?
A) 1-year ARM
B) 3-year ARM
C) 5-year ARM
D) 30-year fixed
Answer: A
Diff: 1
Blooms: Apply
AACSB: Analytic Skills
Topic: Decision Strategies with Outcome Probabilities
LO1: Apply average, aggressive, conservative, and opportunity-loss decision strategies for
problems involving minimization and maximization objectives.
5) What is the best payoff rate for the 1-year ARM?
A) $ 49,618
B) $ 43,650
C) $ 38,560
D) $ 66,645
Answer: C
Diff: 1
Blooms: Apply
AACSB: Analytic Skills
Topic: Decision Strategies Without Outcome Probabilities
LO1: Apply average, aggressive, conservative, and opportunity-loss decision strategies for
problems involving minimization and maximization objectives.
6) What is the worst payoff rate for the 5-year ARM?
A) $ 50,894
B) $ 48,134
C) $ 51,641
D) $ 55,895
Answer: D
Diff: 1
Blooms: Apply
Copyright © 2020 Pearson Education, Inc.
Business Analytics,3rd Edition by
James R. Evans
Complete Chapter Test Bank
are included (Ch 1 to 16)
** Immediate Download
** Swift Response
** All Chapters included
,Table of Contents are given below
1.Introduction to Business Analytics
2.Database Analytics
3.Data Visualization
4.Descriptive Statistics
5.Probability Distributions and Data Modeling
6.Sampling and Estimation
7.Statistical Inference
8.Trendlines and Regression Analysis
9.Forecasting Techniques
10.Introduction to Data Mining
11.Spreadsheet Modeling and Analysis
12.Monte Carlo Simulation and Risk Analysis
13.Linear Optimization
14.Integer and Nonlinear Optimization
15.Optimization Analytics
16.Decision Analysis
,The test bank is organized in reverse order, with the last chapter displayed first, to ensure that all
chapters are included in this document. (Complete Chapters included Ch16-1)
Business Analytics, 3e (Evans)
Chapter 16: Decision Analysis
1) A(n) ________ is a matrix whose rows correspond to decisions and whose columns
correspond to events.
A) decision tree model
B) payoff table
C) utility function table
D) scoring model
Answer: B
Diff: 1
Blooms: Remember
Topic: Formulating Decision Problems
LO1: Construct a payoff table for a decision situation.
Use the information below to answer the following question(s).
Below is a payoff table that lists four mortgage options:
Outcome
Decision Rates Rise Rates Stable Rates Fall
1-year ARM $66,645 $43,650 $38,560
3-year ARM $62,857 $47,698 $42,726
5-year ARM $55,895 $50,894 $48,134
30-year fixed $52,276 $52,276 $52,276
2) What is the average payoff for the 3-year ARM?
A) $ 52,792
B) $ 45,212
C) $ 51,094
D) $ 55,278
Answer: C
Diff: 1
Blooms: Apply
AACSB: Analytic Skills
Topic: Decision Strategies with Outcome Probabilities
LO1: Apply average, aggressive, conservative, and opportunity-loss decision strategies for
problems involving minimization and maximization objectives.
3) What is the average payoff for the 5-year ARM?
A) $ 49,514
B) $ 52,015
C) $ 53,395
313
, 314 Chapter 16: Decision Analysis Business Analytics, 3e
D) $ 51,641
Answer: D
Diff: 1
Blooms: Apply
AACSB: Analytic Skills
Topic: Decision Strategies with Outcome Probabilities
LO1: Apply average, aggressive, conservative, and opportunity-loss decision strategies for
problems involving minimization and maximization objectives.
4) Which of the following decisions has the best average payoff?
A) 1-year ARM
B) 3-year ARM
C) 5-year ARM
D) 30-year fixed
Answer: A
Diff: 1
Blooms: Apply
AACSB: Analytic Skills
Topic: Decision Strategies with Outcome Probabilities
LO1: Apply average, aggressive, conservative, and opportunity-loss decision strategies for
problems involving minimization and maximization objectives.
5) What is the best payoff rate for the 1-year ARM?
A) $ 49,618
B) $ 43,650
C) $ 38,560
D) $ 66,645
Answer: C
Diff: 1
Blooms: Apply
AACSB: Analytic Skills
Topic: Decision Strategies Without Outcome Probabilities
LO1: Apply average, aggressive, conservative, and opportunity-loss decision strategies for
problems involving minimization and maximization objectives.
6) What is the worst payoff rate for the 5-year ARM?
A) $ 50,894
B) $ 48,134
C) $ 51,641
D) $ 55,895
Answer: D
Diff: 1
Blooms: Apply
Copyright © 2020 Pearson Education, Inc.
