# Dante

Words 1733
Pages 7
International University IU
QUANTITATIVE METHODS FOR BUSINESS (FALL 2013)

SAMPLE TEST
MIDTERM EXAMINATION
PART 01: MULTIPLE CHOICE QUESTIONS (20 POINTS)
1. (1 pt) Given the following two-person game, which strategy can be eliminated by use of dominance? Y1 Y2
13

0

X2

6

8

X3

12

14

a. X2

c. Y2

b. Y1

e. X1

d. X3

The following payoff table is using for next 6 questions.

2. (1 pt) What decision would an optimist make?
a. Alternative 1

c. State of Nature A

b. Alternative 2

e. Alternative 3

d. Do Nothing

3. (1 pt) What decision would a pessimist make?
a. Alternative 1

c. State of Nature B

b. Alternative 2

e. Alternative 3

d. Do Nothing

4. (1 pt) What is the best decision if using Criterion Realism (Hurwicz) approach? α = 0.7
a. Alternative 1

c. State of Nature C

b. Alternative 2

e. Alternative 3

d. Do Nothing

Powered by TAs (Le Phuoc Thien Thanh and Le Nhat Ho) | Fall 2013.

[Quantitative Methods for Business] | MIDTERM EXAMINATION: SAMPLE TEST

X1

1

International University IU
5. (1 pt) What is the best decision if using Equally Likely (Laplace) approach?
a. Alternative 1

c. State of Nature A

b. Alternative 2

e. Alternative 3

d. Do Nothing

6. (1 pt) What is the best decision if using Minimax regret approach?
a. Alternative 1

c. State of Nature A

b. Alternative 2

e. Alternative 3

d. Do Nothing

7. (1 pt) Given probability of state of nature P(A) = 30%, P(B) = 30%, P(C) = 40%. What is the best decision if using EOL approach?
c. State of Nature A

b. Alternative 2

e. Alternative 3

d. Do Nothing

8. (1 pt) A rational decision maker must choose between two alternatives. Alternative 1 has a higher EMV than Alternative 2, but the decision maker chooses Alternative 2. What might explain why this occurs?
a. A rational decision…...

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