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BUSINESS DECISION MODELS

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Learning Outcomes

  • Define the concept of decision making
  • Define the common characteristics of decision making
  • List the steps of decision making process
  • Explain the types of decision making environments
  • Explain the cases of decision making under uncertainty
  • Recognize different methods of decision making under uncertainty and make analyses with these methods
  • Explain the decision making under risk and the criterions used when decision making under risk
  • Define the expected value of perfect information
  • Describe the decision tree and components of it
  • Explain the Bayes’ Theorem
  • Define the linear programming concept and its role in the operations research process, and evaluate the limitations in decision-making applications
  • Construct a linear model for a given problem
  • Solve a two-variable linear program on a plane
  • Explain the essence of simplex method in comparison with the other methods for solving linear models
  • Use the simplex method to solve a linear model with elementary algebraic operations
  • Solve a linear model with the simplex method in tabular form
  • Model a transportation problem and define the optimality condition by the concept of duality
  • Solve a modeled transportation problem
  • Model and solve an assignment problem
  • Define the game theory and related concepts of the game theory
  • Find optimal strategies of a two-person zero-sum game
  • Plot graphics of 2xn and mx2 games
  • Define the properties of a stochastic process and, explain the relationship between a stochastic process and a Markov chain
  • Specify a given discrete-time Markov chain in terms of a transition matrix
  • Determine whether states are recurrent or transient in simple cases,
  • Interpret the steady-state solution of a Markov chain
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