About This Chapter
Analyzing Business Decisions - Chapter Summary
Gain greater insight into the basics of analyzing business decisions with help from this engaging chapter. Lessons closely examine Bayes' theorem, decision making without possibilities, expected values of perfect information in business and more. This chapter's self-paced format lets you to choose lessons to review and visit as often as you'd like. Quizzes accompanying the lessons let you gauge your knowledge of key concepts. Questions you develop during your review of this chapter can be submitted to our subject-matter experts via the Dashboard. After utilizing these resources, you will be able to:
- Define and describe the decision analysis approach to decision making in business
- Discuss the use of probability information and economic measures to make business decisions
- Exhibit knowledge of business decision analysis for cases with probability data
- Explain how to make business decisions using new information and revised probability values
- Share reasons companies use utility in business decision making
1. The Decision Analysis Approach to Decision Making in Business
How do you know what the best decision for your business is? What are the costs and benefits associated with each option? In this lesson, we'll examine decision analysis, including what it is and how to use value and uncertainty in your analysis.
2. Making Business Decisions Using Probability Information & Economic Measures
Probability information and economic measures create the foundation for quantitative analysis. This lesson will provide information about how to make business decisions using this probability information and economic measures.
3. Decision Making Without Probabilities: Optimistic, Conservative & Minimax Approaches
Making decisions without knowing what the outcome likely will be is difficult. This lesson guides you through looking at different options to understand what the best and worst case scenarios are when making a decision.
4. Business Decision Analysis for Cases with Probability Data
Making business decisions doesn't have to be confusing or overwhelming. By understanding probability, you can determine what will likely happen based on a variety of different factors. This lesson explains probability data and how it can be used for business cases.
5. Expected Values of Perfect Information in Business
When making a business decision, the more information you have, the better. But how much is information worth to a company? This lesson will help explain the expected values of perfect information.
6. Using New Information & Revised Probability Values to Make Business Decisions
Decisions are seldom final because circumstances and information changes consistently. Using new information and revised probabilities to make decisions are explained in this lesson.
7. Bayes' Theorem: Definition, Formula & Usage
Using Bayes' Theorem allows you to revise probability values when making decisions. This lesson explains what Bayes' Theorem is and how it is applied in decision making.
8. Using Utility in Business Decision Making
A company should always work to maximize profits, right? Well, yes and no. In this lesson, we look at the idea of utility and see how profits can sometimes come second if something with greater utility is needed.
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Other chapters within the Business 316: Strategic Decision Making course
- Introduction to Strategic Decision Making
- Strategic Thinking in Making Business Decisions
- Decision Making Models for Business
- Statistical Tools for Decision Making
- Quantitative Tools for Decision Making
- Financial Data for Strategic Decision Making
- Technological Support for Strategic Decision Making
- Strategic Decision Making & Risk Management
- Group Dynamics in Strategic Decision Making
- Strategic Decision Making for Managers
- Decision Making in International Businesses
- Communication in Strategic Decision Making