Central Location
The expected value of a random variable is a measure of ___ ___
Variability
Variance and standard deviation are both measures of ___
Discrete Random Variable
This may assume a finite or Infinite sequence of values, but they must be whole numbers
Continuous Random Variable
This may assume an numerical value in an interval or collection of intervals
Discrete Probability Distributions
This describes how probabilities are distributed over the values of the random variable
Probability Function - provides probability for each value of the random variable
What is a discrete probability distribution defined by?
Success and Failure
What are the two possible outcomes from a binomial experiment?
False
T/F Binomial experiment trials are dependent
True
T/F In a binomial experiment, the probability of express is a stationary assumption
Poisson Probability Distribution
This is often useful in estimating a number of occurrences over a specified interval of time/space.
The probability of occurrence is same for intervals of equal length.
Also, occurence/nonoccurence in any interval is indepedent of other interval results
0
What is the probability of a particular value in a uniform probability density function>?
Normal Probability Distribution
What is the most important distribution for describing continuous random variable
Unformly distributed
A random variable is ___ ___ when probability that that variable will assume a value in any interval of same length is the same for each interval
Binomial and Poisson
What probability distributions deal with discrete numbers?
Uniform
Normal
Exponential
What probability distributions deal with continuous numbers?
True
T/F Normal probability distribution is symmetric and bell-shaped
True
T/F Normal probability distribution is defined by its mean and standard deviation
Mean (same as median and mode)
what is teh highest point on the normal probability distribution?
True
The mmean of a normal probability distribution can be positive negative or 0
Width of the curve (larger deviations have wider flatter curves)
What does the standard deviation determine in reference to the normal probability distribution graph?
Area under the curve (total area = 1)
Probabilities for normal random variable are given by?
Standard normal probability distribution
Random variable distribution having a normal distribution with a mean of 0 and a standard deviation of 1 is a __ __ __ __
Z
What letter is used to designate the standard normal random variable?
Exponential Probability Function
What is useful in describing the time it takes to complete a task?
True
T/F States of nature are collectively exhaustive (at least 1 must occur)
False
T/F States of nature are not mutually exclusive
Payoff Table
WHat shows sequences of all combinations and states of nature
Square
In the decision tree what shape is the decision represented by
Circle
In the decision tree what is a chance represented by?
Optimistic
Conservative
Minimax Regret
What are the three approaches for decision making without probabilities?
Expected Value Approach
What approach is used for decision making with probabilities?
Sensitivity Analysis
What can be used to determine how changes affect the recommended decision analysis
Prior Probabilities
What are probabilities before additional (sample) info?
Prosterior Probabilities
What are probabilities after additional (sample) info?
True
T/F Efficiency is always a number between 0 and 1
Utilities
What are used when decision criteria must be based on more than just expected monetary values?
Utility
This is a measure of total worth of a particular outcome, reflecting decisionmaker's attitute towards a collection of factors
Payoffs can be crazy high or low
When is a utility analysis particularly important?
True
T/F BInomial experiments use a sequence of finite identical trials