Will the use of decision tree analysis guarantee the best decision for a firm? Why or why not? If not, why bother using it?

Use the following information to answer multiple-choice Questions 21 to 30. A fibre glass company is considering the possibility of introducing a new product. Because of the expense involved in developing the initial moulds and acquiring the necessary equipment to produce fibreglass, it has decided to conduct a pilot study to make sure that the market will be adequate. They estimate that the pilot study will cost £12,000. Furthermore, the pilot study can be either successful or unsuccessful. The basic decisions are to build a large manufacturing facility, a small manufacturing facility, or no facility at all. With a favourable market, the company can expect to make £100,000 from the large facility or £60,000 from the smaller facility. If the market is unfavourable, however, they estimate that they would lose £40,000 with a large facility, while they would lose only £30,000 with the small facility. The company estimates that the probability of a favourable market given a successful…

Use this data to illustrate how the manager might make the decision if he uses each of the following heuristics: elimination by aspects (EBA)

why is it better to use regression analysis rather than variance analysis in analyzing drivers of customer satisfaction ?

Bias in decision-making happens without a thought in most decisions. Identify a recent or current event in which you think bias was evident in the decision-making process surrounding that event.

Describe the situation when the decision maker used qualitative analysis using the first two steps of the five-step decision-making process.

Do you think that the use of Pivot Tables is important for a Business Analysis? Argument your answer.

1. How IS is different from IT? 2. What are Management Information Systems? 3. Which type of analysis is usually performed by decision support systems?

Which aspect of decision making is NOT ALWAYS part of a decision tree? the sequence of the decision making the states of nature and their probabilities the outcomes of an experiment O the individual decisions involved « Previous

Construct a decision tree and answer the following questions:   What is the EMV of each decision alternative? Which action should be selected?  What is the expected value with perfect information?  What is the expected value of perfect information?