Master Decision Analysis
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Questions and Answers

Which of the following best describes the purpose of decision analysis?

  • To identify the specific decision
  • To compare different decision options (correct)
  • To conduct a sensitivity analysis
  • To calculate average costs and outcomes

    • What is the first step in decision analysis?

  • Specify Alternatives
  • Identify the Specific Decision (correct)
  • Draw the Decision Analysis Structure
  • Specify Possible Costs, Outcomes, and Probabilities

    • What is the purpose of a decision tree in decision analysis?

  • To graphically display choices (correct)
  • To calculate average costs and outcomes
  • To conduct a sensitivity analysis
  • To specify possible costs, outcomes, and probabilities

    • What is the fifth step in decision analysis?

    <p>Perform Calculations</p> Signup and view all the answers

    What is the purpose of a sensitivity analysis in decision analysis?

    <p>To assess the impact of changes in input variables</p> Signup and view all the answers

    True or false: Decision analysis is the application of an analytical method for comparing decision options.

    <p>True</p> Signup and view all the answers

    True or false: Decision analysis assists in making decisions when the decision is simple and there is certainty about all the information.

    <p>False</p> Signup and view all the answers

    True or false: Decision analysis graphically displays choices and facilitates the calculation of values needed to compare options.

    <p>True</p> Signup and view all the answers

    True or false: The fourth step in decision analysis is to specify possible costs, outcomes, and probabilities.

    <p>True</p> Signup and view all the answers

    True or false: The sixth step in decision analysis is to conduct a sensitivity analysis.

    <p>True</p> Signup and view all the answers

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