They are used by risk neutral decision makers

1 .Maximax

A $180 B $200 C $220

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2 .Maximin

A $180 B $200 C $220

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3 .They accurately reflect the risks associated with each decision

A CORRECT B INCORRECT

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4 .They are more appropriate for decisions that are repeated many times

A CORRECT B INCORRECT

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5 .They may be unreliable as the probabilities used are estimates

A CORRECT B INCORRECT

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7 .Return on capital employed

A INCREASE B NO IMPACT

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8 .Return on equity

A INCREASE B NO IMPACT

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9 .Many of the fixed costs relating to Product D may not be avoided even if production is ceased

A TRUE B FALSE

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10 .Demand for other products may be adversely affected by ceasing production of Product D

A TRUE B FALSE

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