About This Chapter
Quantitative Tools for Decision Making - Chapter Summary
Ensuring you have a quality understanding of quantitative tools for decision making is easy using this chapter's entertaining lessons. Whether you're looking to learn more about decision trees or hope to better understand forecasting in business, this chapter can help! Choose any lessons that offer the knowledge boost you need, and use our mini quizzes to gauge your grasp of those lessons. To check your comprehension of the entire chapter, take our broader exam. The Dashboard keeps track of your progress and lets you easily submit lesson topic questions to our experts. After completing this chapter, you will be able to:
- Share the methods, purpose and benefits of the quantitative approach to decision making
- List and describe quantitative decision making tools
- Define and share examples and advantages of a decision tree
- Explain how simulation is used to analyze and solve business problems
- Detail the history and advantages of Monte Carlo simulations
- Discuss the meaning and models of forecasting in business
- Describe qualitative and quantitative methods used to prepare business forecasting
1. The Constructive Nature of Memory
When we remember an event, is the memory an exact reproduction or is it altered by our current frame of reference? In this lesson, we'll discuss the constructive nature of memory and how the way we process information impacts decision making.
2. The Quantitative Approach to Decision Making: Methods, Purpose & Benefits
At the core of the quantitative approach to decision-making are the estimation of probabilities of event and their consequences. Learn more about popular quantitative methods in this lesson.
3. Quantitative Decision Making Tools: Decision Trees, Payback Analysis & Simulations
Successful managers use decision-making tools to analyze a problem and try to determine the best solution for that problem. Here, we will discuss three main decision-making tools and help you to understand their function and implementation.
4. What Is a Decision Tree? - Examples, Advantages & Role in Management
Clearly identifying all possible solutions for a given decision is an important part of successful management. In this lesson, you will learn how to use a decision tree to identify and select possible courses of action.
5. Using Simulation to Analyze and Solve Business Problems
This lesson covers using simulation to analyze and solve business problems. We'll learn about how simulation tools can help you to understand how a decision today can impact your company's success tomorrow.
6. The Monte Carlo Simulation: Scope & Common Applications
This lesson will define Monte Carlo Simulations and briefly discuss their history and advantages, as well as how they're used to reduce the risk involved with complex decisions where outcomes are uncertain.
7. What is Forecasting in Business? - Definition & Models
Being able to predict what is coming next is an invaluable skill for a business. In this lesson, we look at how businesses use forecasting to make the best possible plans for the future.
8. Business Forecasting: Methods & Analysis
Businesses create financial forecasts for a number of variables, such as sales volume. In this lesson, you'll learn about the qualitative and quantitative methods used to prepare forecasts.
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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
- 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
- Analyzing Business Decisions
- Communication in Strategic Decision Making