If decision maker has a pessimistic approach, the Criterion of Pessimism can be used. The decision maker thinks that the worst outcomes for each alternative will be realized.

Once the decision problem has been identified, in the second step the objective of the problem must be clearly stated.The correct answer is "A".

In this criterion, the decision maker confronts the various possible states of nature in a decision under risk and; he or she chooses the alternative that is best for the most likely state of nature, rather than calculating in all states of nature. With another saying, it states that the decision maker should ignore all possible events except the one most likely to occur, and should select the best possible result (maximum gain or minimum loss) in the given circumstances. The correct answer is D.

EMV max : x = 50 (0.6) + 110 (0.4) = 74 . pg. 36. Correct answer is A.

The foundation of operations research is mostly cited to studies and applications in the U.S. Army right before The World War II. However, Leonid V. Kantorovich is recognized as the first to explore this area. In 1939, Kantorovich published a paper on a method for a production plan which he claimed to be the optimal way. This study included a linear program without a systematic solution. The systematic solution which is called “simplex algorithm” was later introduced by George B. Dantzig, who had planning experience in the U.S. Army Air Force.

As also understood from the information given, the correct answer is B.

Information about the other names in the options:

Tjalling C. Koopmans, who built a model for ship routes, was another contributor to the field. He and Kantorovich shared 1975 Nobel Prize in economics for their studies on the optimal allocation of resources.

Industrial applications of linear programming Stemmed from the oil industry after William W. Cooper and his colleagues’ publications about the efficient blending of aviation fuels. As the computational ability of the solver systems advanced rapidly, operations research started to be used widely.

Sometime in the midst of the last century, Chester Barnard, a retired telephone executive and author of The Functions of the Executive, imported the term “decision making” from the lexicon of public administration into the business world.

When the decision maker has information about the probabilities of occurrence of the events, the decision making environment is called “decision making under risk”.

Once the decision problem has been identified, in the second step the objective of the problem must be clearly stated. Therefore, "Establishing objectives" is the second step.

Events are environmental factors that influence the choice of the decision maker. However, they are uncontrollable.

10 . pg. 39 . Correct answer is E.

A high quality decision should bring more profitability and lower costs, shorten (not lengthen) delivery times, increase shareholder value, attract more new customers and provide positive responses from customers. The correct answer is D.

An objective function is the function of a linear programming model that is desired to be maximized or minimized. As also understood from the information given, the correct answer is A.

Information related to the other terms in the options as follows:

An optimal solution is a feasible solution that reaches the most favorable value of the objective function.

A mathematical model is an abstraction of the analyzed system using mathematical expressions.

Linear models consist of constraints and an objective in the form of a linear expression.

A non-negativity constraint requires the value x to be greater or equal to zero.