Minimum cost flow problems are the special type of linear programming problem referred to as distribution-network problems.
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The maximax approach is an optimistic strategy.
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True
False
Payoffs always represent profits in decision analysis problems.
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True
False
A decision tree branches out all of the possible decisions and all of the possible events.
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True
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Which of the following is an example of a transshipment node?
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A) Storage facilities
B) Processing facilities
C) Short-term investment options
D) Warehouses
E) All of the choices are correct.
The amount of flow that is eventually sent through an arc is called the capacity of that arc.
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Shortest path problems are concerned with finding the shortest route through a network.
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True
False
Payoff tables may include only non-negative numbers.
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True
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The maximin criterion is an optimistic criterion.
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True
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Any node where the net amount of flow generated is fixed at zero is a transshipment node.
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True
False
Each node in a minimum cost flow problem where the net amount of flow generated is a fixed positive number is a demand node.
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True
False
Which of the following is not an assumption of a minimum cost flow problem?
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A) At least one of the nodes is a supply node.
B) There is an equal number of supply and demand nodes.
C) Flow through an arc is only allowed in the direction indicated by the arrowhead.
D) The cost of the flow through each arc is proportional to the amount of that flow.
E) The objective is either to minimize the total cost or to maximize the total profit.
States of nature are alternatives available to a decision maker.
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True
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What is the objective of a maximum flow problem?
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A) Maximize the amount flowing through a network.
B) Maximize the profit of the network.
C) Maximize the routes being used.
D) Maximize the amount produced at the origin.
E) None of the choices is correct.
Prior probabilities refer to the relative likelihood of possible states of nature.
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A event node in a decision tree indicates that a decision needs to be made at that point.
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Network representations can be used for financial planning.
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In decision analysis, states of nature refer to possible future conditions.
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True
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In a minimum cost flow problem there can be only one supply node and only one demand node.
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True
False
Bayes’ decision rule says to choose the alternative with the largest expected payoff.
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True
False