Which of the following is an analysis a decision maker conducts to determine how sensitive a decision alternative is to change in the probability values of nature?
A)decision tree
B)sensitivity analysis
C)sequential analysis
D)decision priority

Question

Quizplus · Accepted Answer

Sensitivity analysis is the type of analysis that helps decision-makers understand how a decision alternative would change if the probability values of nature change. Decision tree is a graphical representation of decision alternatives and probabilities of nature, sequential analysis is a step-by-step analysis of decision alternatives, and decision priority is a ranking of decision alternatives based on their importance. None of these specifically address the sensitivity of a decision to change in probability values.

Which of the Following Is an Analysis a Decision Maker