Which of the following statements the use of decision trees in multi-stage decision making problems is FALSE?
A) Multi-stage decision making problems involve a sequence of decisions.
B) EVSI is an upper bound for the EVPI.
C) Multi-stage decision making problems using decision trees are solved moving backward.
D) EVSI measure the value of sample information.
E) The efficiency of sample information is a ratio of EVSI to EVPI.
B
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The most significant sourcing decision for a firm is
A) whether to locate a plant close to customers or locate a plant close to sources of raw materials or suppliers. B) whether to use highly automate processes or manual labor. C) whether to use traditional inventory methods or adopt a just in time approach to stocking. D) whether to perform a task in-house or outsource it to a third party.
You are headed to the mountains for some climbing this summer and you need some gear. The local mountaineering shop is offering 6% financing on all purchases before the end of the month
Your savings account is currently paying 5%, and you are in a marginal tax bracket of 28%. Which of the following is true? A) Borrow from the mountain shop — it is cheaper. B) Take the money out of savings — it is cheaper. C) It does not matter where you get the money; it will cost the same. D) You should seek competent financial help. E) None of the above are true.