GERI MIDTERM LATEST VERSION NEWEST 2025 ACTUAL EXAM COMPLETE QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED A+||BRAND NEW
VERSION!!
5 steps of the decision making process - (answer)1) define problem
2) list all alternatives (options, rows)
3) identify outcomes (states of nature, columns) for each alternative
4) identify payoff for each combo of alternatives and outcome
5) pick a technique
break even point graph - (answer)FC= intercept
(P-VC)= slope
x intercept = break even point
characteristics of a good decision - (answer)-based on logic
-considers all options and info available
-sometimes gives unfavorable results
circle - decision tree - (answer)EMV, state of nature, calculation
Corner Point Theorem - (answer)optimal solution of a linear program problem occurs at one of the
linear corner points of the feasible region
corner points - (answer)where constraints used to generate feasible region intersect
costs = - (answer)fixed costs + (quantity x variable costs)
EMV 's are - (answer)the lines on your graph
EMV calculation - (answer)SUM (payoff of outcome * probability)
, GERI MIDTERM LATEST VERSION NEWEST 2025 ACTUAL EXAM COMPLETE QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED A+||BRAND NEW
VERSION!!
- repeat for each option (row), choose largest
EMV Max - (answer)range of solutions
ex:
0 <= p <= .3 A
.3 <= p <= .7 B
.7 <= p <= 1 C
- find these by setting EMV's = to each other
- this is the line that is made when all EMV's are graphed and you are looking at the maximum solutions
EMV stands for - (answer)expected monetary value
EOL calculation - (answer)SUM (regret of outcome * probability)
- repeat for each option (row), choose smallest
EOL means - (answer)expected opportunity loss
- best decision will be the least costly
EVPI calculation - (answer)EVwPI-EMV Max, where EMV Max is the equation of the line that has the
highest solution at the given probability
- simplify these lines then plug in the probability to solve for p
EVPI means - (answer)expected value of perfect info (aka cost of perfect info)
CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED A+||BRAND NEW
VERSION!!
5 steps of the decision making process - (answer)1) define problem
2) list all alternatives (options, rows)
3) identify outcomes (states of nature, columns) for each alternative
4) identify payoff for each combo of alternatives and outcome
5) pick a technique
break even point graph - (answer)FC= intercept
(P-VC)= slope
x intercept = break even point
characteristics of a good decision - (answer)-based on logic
-considers all options and info available
-sometimes gives unfavorable results
circle - decision tree - (answer)EMV, state of nature, calculation
Corner Point Theorem - (answer)optimal solution of a linear program problem occurs at one of the
linear corner points of the feasible region
corner points - (answer)where constraints used to generate feasible region intersect
costs = - (answer)fixed costs + (quantity x variable costs)
EMV 's are - (answer)the lines on your graph
EMV calculation - (answer)SUM (payoff of outcome * probability)
, GERI MIDTERM LATEST VERSION NEWEST 2025 ACTUAL EXAM COMPLETE QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED A+||BRAND NEW
VERSION!!
- repeat for each option (row), choose largest
EMV Max - (answer)range of solutions
ex:
0 <= p <= .3 A
.3 <= p <= .7 B
.7 <= p <= 1 C
- find these by setting EMV's = to each other
- this is the line that is made when all EMV's are graphed and you are looking at the maximum solutions
EMV stands for - (answer)expected monetary value
EOL calculation - (answer)SUM (regret of outcome * probability)
- repeat for each option (row), choose smallest
EOL means - (answer)expected opportunity loss
- best decision will be the least costly
EVPI calculation - (answer)EVwPI-EMV Max, where EMV Max is the equation of the line that has the
highest solution at the given probability
- simplify these lines then plug in the probability to solve for p
EVPI means - (answer)expected value of perfect info (aka cost of perfect info)
