Scenario: You are a business owner faced with an important decision that could potentially be very lucrative. Keep in mind the “Six Steps in Decision Making” (textbook reference) as you set up your decision analysis.
- What is the problem and objective of this decision?
- Identify at least three alternatives and three states of nature.
- Create a decision table in Excel QM. See video in Live Binder.
- What are the potential payoff/losses for each alternative and state of nature?
- Choose two of the five decision strategies, and solve it in Excel QM. State the best alternative for each strategy.
- Criterion of realism (Hurwicz)
- Equally likely (Laplace)
- Minimax regret
- Why did you choose the two strategies? What are the results of the best alternative? What is your final decision?
After you have contemplated the questions above, draft your reflective essay. Every piece of writing should have an introduction, body, and conclusion. A good way to plan this particular reflective essay is to write an introduction to the essay. Next, write at least three body paragraphs and address each of the points listed above. End your essay with a conclusion paragraph tying all of your ideas together. The essay should be at least five paragraphs in length.
You are expected to use outside resources for this essay. Cite outside sources in proper APA format.