Which of the following statements are true?
A)Sensitivity analysis is a process of seeing how optimal decision and EMV vary when one or more inputs vary.
B)Multistage decision problem is one where decisions and observations of uncertain outcomes alternate.
C)Contingency plan is a strategy in a multistage decision problem that specifies which decision to make for each possible outcome.
D)All of these choices are true.

Question

Quizplus · Accepted Answer

All the statements provided are accurate descriptions of the terms they refer to. Sensitivity analysis does indeed involve observing how changes in inputs affect the optimal decision and expected monetary value (EMV). Multistage decision problems involve a sequence of decisions and observations of uncertain outcomes. A contingency plan in the context of multistage decision problems does specify decisions for each possible outcome, making all the choices true.

Which of the Following Statements Are True