Copyright

Ch 12: Analyzing Business Decisions

About This Chapter

The short lessons and mini quizzes in this chapter can simplify the process of studying for a test or understanding an assignment that covers ways to analyze business decisions. These learning resources are accessible 24 hours a day and serve as a fun and effective way to improve your knowledge.

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

8 Lessons in Chapter 12: Analyzing Business Decisions
Test your knowledge with a 30-question chapter practice test
The Decision Analysis Approach to Decision Making in Business

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.

Making Business Decisions Using Probability Information & Economic Measures

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.

Decision Making Without Probabilities: Optimistic, Conservative & Minimax Approaches

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.

Business Decision Analysis for Cases with Probability Data

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.

Expected Values of Perfect Information in Business

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.

Using New Information & Revised Probability Values to Make Business Decisions

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.

Bayes' Theorem: Definition, Formula & Usage

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.

Using Utility in Business 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.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
Not Taken
Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
Not Taken

Earning College Credit

Did you know… We have over 200 college courses that prepare you to earn credit by exam that is accepted by over 1,500 colleges and universities. You can test out of the first two years of college and save thousands off your degree. Anyone can earn credit-by-exam regardless of age or education level.

To learn more, visit our Earning Credit Page

Transferring credit to the school of your choice

Not sure what college you want to attend yet? Study.com has thousands of articles about every imaginable degree, area of study and career path that can help you find the school that's right for you.

Support