AGEC 325 Quizzes for Exam 3 Questions
and Answers Graded A+
T or F: Risk acceptance is an individual decision - Correct answer-True
T or F: All else being equal, having healthy financial reserves makes it easier to
take on risk - Correct answer-True
T or F: All else being equal, willingness to take on financial risks increases with a
person's age - Correct answer-False
T or F: Managers rarely make decisions based on averages or expected values. -
Correct answer-False
T or F: Decision makers tend to prefer options with higher variability in returns -
Correct answer-False
T or F: Often, managers have to rely on their experience and personal judgement to
help make a decision - Correct answer-True
T or F: The range of the following numbers is 173, 6, 9, 12, 18 - Correct answer-
False
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, T or F: Approximately 95% of the population represented by a standard normal
distribution lies within 2 standard deviations of the mean - Correct answer-True
T or F: The expected value (or "average") of the following set of numbers is 7.5.5,
10 - Correct answer-True
T or F: Of the two choices represented below, most people would choose Option
A.Option A: Expected Returns = $1,500. Coefficient of Variation = 0.2.Option B:
Expected Returns = $1,500. Coefficient of Variation = 0.1 - Correct answer-False
T or F: A Decision Tree and Payoff Matrix convey the same information related to
choices underuncertainty. - Correct answer-True
T ro F: When using a "Most Likely Outcome" decision rule, we select the strategy
with the highestexpected return in the most likely scenario - Correct answer-True
T or F: When using a "Maximum Expected Value" decision rule, we select the
strategy with the highest expected return and lowest variability of returns - Correct
answer-False
T or F: When using a "Safety First" decision rule, we select the scenario that has
the best of the worst outcomes for all scenarios - Correct answer-True
T or F: One approach for managing production risks is to choose enterprises with
stable incomes - Correct answer-true
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and Answers Graded A+
T or F: Risk acceptance is an individual decision - Correct answer-True
T or F: All else being equal, having healthy financial reserves makes it easier to
take on risk - Correct answer-True
T or F: All else being equal, willingness to take on financial risks increases with a
person's age - Correct answer-False
T or F: Managers rarely make decisions based on averages or expected values. -
Correct answer-False
T or F: Decision makers tend to prefer options with higher variability in returns -
Correct answer-False
T or F: Often, managers have to rely on their experience and personal judgement to
help make a decision - Correct answer-True
T or F: The range of the following numbers is 173, 6, 9, 12, 18 - Correct answer-
False
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
, T or F: Approximately 95% of the population represented by a standard normal
distribution lies within 2 standard deviations of the mean - Correct answer-True
T or F: The expected value (or "average") of the following set of numbers is 7.5.5,
10 - Correct answer-True
T or F: Of the two choices represented below, most people would choose Option
A.Option A: Expected Returns = $1,500. Coefficient of Variation = 0.2.Option B:
Expected Returns = $1,500. Coefficient of Variation = 0.1 - Correct answer-False
T or F: A Decision Tree and Payoff Matrix convey the same information related to
choices underuncertainty. - Correct answer-True
T ro F: When using a "Most Likely Outcome" decision rule, we select the strategy
with the highestexpected return in the most likely scenario - Correct answer-True
T or F: When using a "Maximum Expected Value" decision rule, we select the
strategy with the highest expected return and lowest variability of returns - Correct
answer-False
T or F: When using a "Safety First" decision rule, we select the scenario that has
the best of the worst outcomes for all scenarios - Correct answer-True
T or F: One approach for managing production risks is to choose enterprises with
stable incomes - Correct answer-true
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
