Quantitative Analysis for Management, 13/e

Discussion Questions and Problems

Discussion Questions

1. 3-1 Give an example of a good decision that you made that resulted in a bad outcome. Also give an example of a bad decision that you made that had a good outcome. Why was each decision good or bad?

2. 3-2 Describe what is involved in the decision process.

3. 3-3 What is an alternative? What is a state of nature?

4. 3-4 Discuss the differences among decision making under certainty, decision making under risk, and decision making under uncertainty.

5. 3-5 What techniques are used to solve decision-making problems under uncertainty? Which technique results in an optimistic decision? Which technique results in a pessimistic decision?

6. 3-6 Define opportunity loss. What decision-making criteria are used ...