Quantitative Analysis for Management, 13/e

Chapter 3 Decision Analysis

Learning Objectives

After completing this chapter, students will be able to:

1. 3.1 List the steps of the decision-making process.

2. 3.2 Describe the types of decision-making environments.

3. 3.3 Make decisions under uncertainty.

4. 3.4 Use probability values to make decisions under risk.

5. 3.5 Use computers to solve basic decision-making problems.

6. 3.6 Develop accurate and useful decision trees.

7. 3.7 Revise probability estimates using Bayesian analysis.

8. 3.8 Understand the importance and use of utility theory in decision making.

To a great extent, the successes or failures that a person experiences in life depend on the decisions that he or she makes. The person who managed the ill-fated space shuttle Challenger is ...