Complete the following:
1 Decision making under risk is a probabilistic decision situation.
True
False
2 The several criteria (maximax, maximin, equally likely, criterion of realism, minimax) used for decision making under uncertainty may lead to the choice of different alternatives.
True
False
3 One disadvantage of using decision trees when making sequential decisions is that the tree does not give good depictions of the sequential aspect of the decisions.
True
False
4 In a decision problem where we wish to use Bayes' theorem to calculate posterior probabilities, we should always begin our analysis with the assumption that all states of nature are equally likely, and use the sample information to revise these probabilities to more realistic values.
True
False
5 A pessimistic decision making criterion is
a. maximax.
b. equally likely.
c. maximin.
d. decision making under certainty.
e. minimax.