Podcast
Questions and Answers
Which of the following best describes the purpose of decision analysis?
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?
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?
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?
What is the fifth step in decision analysis?
What is the purpose of a sensitivity analysis in decision analysis?
What is the purpose of a sensitivity analysis in decision analysis?
True or false: Decision analysis is the application of an analytical method for comparing decision options.
True or false: Decision analysis is the application of an analytical method for comparing decision options.
True or false: Decision analysis assists in making decisions when the decision is simple and there is certainty about all the information.
True or false: Decision analysis assists in making decisions when the decision is simple and there is certainty about all the information.
True or false: Decision analysis graphically displays choices and facilitates the calculation of values needed to compare options.
True or false: Decision analysis graphically displays choices and facilitates the calculation of values needed to compare options.
True or false: The fourth step in decision analysis is to specify possible costs, outcomes, and probabilities.
True or false: The fourth step in decision analysis is to specify possible costs, outcomes, and probabilities.
True or false: The sixth step in decision analysis is to conduct a sensitivity analysis.
True or false: The sixth step in decision analysis is to conduct a sensitivity analysis.
