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An aggressive decision maker would prefer the minimax regret
$ 15.00

1)An aggressive decision maker would prefer the minimax regret criterion over the maximin criterion. T/F

2)The expected value criterion ignores the decision maker’s attitude toward risk. T/F

3)Which of the following criteria represents an aggressive/optimistic approach?
a. maximin
b. maximax
c. expected value
d. minimax regret

4)The states of nature in a payoff table should be mutually exclusive and collectively exhaustive. T/F

5)A stationary forecasting model is appropriate for a time series which exhibits primarily:
a. trend
b. cyclical components
c. random variation
d. seasonal components

6)In the exponential smoothing (ES) technique, the value of alpha, the smoothing constant:
a. is preset by the analyst and not subject to validity testing.
b. typically is at the higher end in the range of possible values.
c. may assume any non-negative value.
d. determines the forecasting model's responsiveness to abrupt changes.

7)June forecast: 71. June actual: 68. Alpha = 1.0. July's
exponentially smoothed forecast is:
a. 70
b. 64
c. 66
d. 68

8) The "weights" in the weighted moving average method are unequal and typically decrease with the age of the observation. 
T/F

9) see attachment with picture

10) RDN’s sales of cable modem in San Mateo, California, for the months of January through April were as follows: January – 50, February - 80, March - 70, and April - 60. Suppose exponential smoothing is used with a smoothing constant, alpha, of .20. If the forecast for January was 50, the forecast for May would be approximately:
a. 55
b. 59
c. 57
d. 61

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