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1)An aggressive decision maker would prefer the minimax regret criterion over the maximin criterion. T/F2)The expected value criterion ignores the decision maker’s attitude toward risk. T/F3)Which of the following criteria represents an aggressive/optimistic approach?a. maximinb. maximaxc. expected valued. minimax regret4)The states of nature in a payoff table should be mutually exclusive and collectively exhaustive. T/F5)A stationary forecasting model is appropriate for a time series which exhibits primarily:a. trendb. cyclical componentsc. random variationd. seasonal components6)In the exponential smoothing (ES) technique, the value of alpha, the smoothing constant:a. is preset by the analyst and not subject to validity testing.b. typically is at the higher end in the range of possible values.c. may assume any non-negative value.d. determines the forecasting model’s responsiveness to abrupt changes.7)June forecast: 71. June actual: 68. Alpha = 1.0. July’sexponentially smoothed forecast is:a. 70b. 64c. 66d. 688) The “weights” in the weighted moving average method are unequal and typically decrease with the age of the observation. T/F9) see attachment with picture10) RDN’s sales of cable modem in San Mateo, California, for the months of January through April were as follows: January – 50, February – 80, March – 70, and April – 60. Suppose exponential smoothing is used with a smoothing constant, alpha, of .20. If the forecast for January was 50, the forecast for May would be approximately:a. 55b. 59c. 57d. 61
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