Decision analysis, equally likely, maximax, and maximin decision criteria, expected value, expected value of perfect information, minimax regret criterion, payoff table, and decision tree. Because of the advances in computer technology, quantitative techniques are becoming more widely used in decision making.
Managers make many decisions daily.
The more complex and strategically important decisions are now possible to solve given the low cost and flexible technology and software available. This chapter covers a few topics in decision analysis which are based upon logical, systematic approaches to decision making. Now Working Examples Suppose that we are conducting a simple experiment involving outcomes that have known probabilities. The experiment is flipping a coin twice and recording the final outcome of the successive coin flips. We can apply the same principles using Decision Tables and Trees with organizations decision making.