When a Decision Maker Is Faced with Several Decision Alternatives

question 12

Multiple Choice

When a decision maker is faced with several decision alternatives and an uncertain set of future events. He/She uses ______ to develop an optimal strategy.

• A) utility theory
• B) predictive analytics
• C) data mining
• D) decision analysis

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Definitions:

Data Points

Individual observations or measurements recorded during a study or experiment.

SSE

Sum of Squared Errors, a measure used in statistics to quantify the discrepancy between the observed and predicted values.

Null Hypothesis

A default statement that there is no difference or effect, used as a starting point for statistical hypothesis testing.

Independent Variables

Variables in an experiment or model that are manipulated or categorized to determine their effect on dependent variables.