BUSOBA 2321 Final Question and Answer
[2026] | UPDATED ACTUAL Exam |
Complete Exam Prep
• Decision Analysis -✓✓ an analytic and systematic way to tackle problems
• Characteristics of good decisions -✓✓ - based on logic
- considers all possible alternatives
- examines all available information about the future
- sometimes result in unfavorable outcomes
• Characteristics of bad decisions -✓✓ - does not consider alternatives
- does not use all available information
- sometimes yield favorable results
• Five steps in decision analysis -✓✓ - define the problem
- list all possible alternatives
- identify possible outcomes for each decision alternative
- identify the payoff for each combination
- select a decision analysis modeling technique, apply the model, and make the
decision
• Types of decisions -✓✓ - strategic
- tactical
- operational
, • Strategic decisions -✓✓ take a long time and have significant consequences for
incorrect decisions
• Tactical decisions -✓✓ take a significant amount of time and can have high
consequence for incorrect decisions
• Operational decisions -✓✓ take a limited amount of time but have low
consequences for incorrect decisions
• Payoff table -✓✓ - decisions in rows
- states of nature in columns
- values can be positive (profit) or negative (loss)
• Maximax Criteria (Optimistic Approach) -✓✓ Short-sided, Potential High Risk,
Best Among Best in Payoff Table
- create an additional column ("maximum")
- determine the maximum payoff for each decision (row)
- choose the maximum value in the "maximum" column
• Maximin Criteria (Pessimistic Approach) -✓✓ Short Sided, Potential High
Opportunity Lost, Best Among Worst in Payoff Table
- create an additional column ("minimum")
- determine the minimum payoff for each decision (row)
- choose the maximum value in the "minimum" column
[2026] | UPDATED ACTUAL Exam |
Complete Exam Prep
• Decision Analysis -✓✓ an analytic and systematic way to tackle problems
• Characteristics of good decisions -✓✓ - based on logic
- considers all possible alternatives
- examines all available information about the future
- sometimes result in unfavorable outcomes
• Characteristics of bad decisions -✓✓ - does not consider alternatives
- does not use all available information
- sometimes yield favorable results
• Five steps in decision analysis -✓✓ - define the problem
- list all possible alternatives
- identify possible outcomes for each decision alternative
- identify the payoff for each combination
- select a decision analysis modeling technique, apply the model, and make the
decision
• Types of decisions -✓✓ - strategic
- tactical
- operational
, • Strategic decisions -✓✓ take a long time and have significant consequences for
incorrect decisions
• Tactical decisions -✓✓ take a significant amount of time and can have high
consequence for incorrect decisions
• Operational decisions -✓✓ take a limited amount of time but have low
consequences for incorrect decisions
• Payoff table -✓✓ - decisions in rows
- states of nature in columns
- values can be positive (profit) or negative (loss)
• Maximax Criteria (Optimistic Approach) -✓✓ Short-sided, Potential High Risk,
Best Among Best in Payoff Table
- create an additional column ("maximum")
- determine the maximum payoff for each decision (row)
- choose the maximum value in the "maximum" column
• Maximin Criteria (Pessimistic Approach) -✓✓ Short Sided, Potential High
Opportunity Lost, Best Among Worst in Payoff Table
- create an additional column ("minimum")
- determine the minimum payoff for each decision (row)
- choose the maximum value in the "minimum" column
