This unit addresses the tools and methodologies used for decision making in business. It is focused on economic and statistical models of decision analysis and their application in large and small business settings, as well as in a public policy framework. It will be shown how use of the models can improve the decision process by helping the decision-maker understand the structure of the decision and incorporate subjective probabilities as a way to portray risk. The importance of sensitivity analysis will be emphasised, as well as the need to combine both quantitative and qualitative considerations in decision-making. Cases will be drawn from small business scenarios, the public policy arena, and corporate settings.
Prescribed Text - MANAGERIAL DECISION MAKING PROCESS