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 the above
E) None of the above

Question

Quizplus · Accepted Answer

All of the statements are true. Sensitivity analysis helps in understanding the impact of changes in inputs on optimal decision and expected monetary value (EMV). A multistage decision problem is one where decisions and observations of uncertain outcomes alternate. In such problems, contingency plans specify which decision should be made for each possible outcome.

Which of the Following Statements Are True