Appendix Chapter 3
1) A ________ ________ describes the likelihood or the probability, that each of the mutually exclusive and collectively exhaustive set of events will occur.
A) sales mix
B) unit mix
C) weighted average
D) distributed method
E) probability distribution
2) When the outcomes are measured in monetary terms, expected value is often called:
A) unknown fund values.
B) unexpected probabilities.
C) expected monetary fund.
D) expected monetary value.
E) expected probability statement.
3) A decision table is a summary of the alternative actions, events, outcomes, and probabilities of events.
4) When the outcomes are measured in monetary terms, expected value is often called expected monetary value.
5) Managers understand that uncertainty is known as the possibility that an actual amount will deviate from an expected amount.
6) What should managers understand about decision models and uncertainty? What are the five steps in the quantitative analysis that managers implement in their decision processes?