QMB 3301 Lecture Notes - Lecture 1: Decision Theory, Problem Solving, Scientific Method
Document Summary
Management science: an approach to decision making based on the scientific method makes extensive use of quantitative analysis, a variety of names exists for the body of knowledge involving quantitative approaches to decision making. Problem solving and decision making: the process of identifying a difference between the actual and the desired state of affairs and then taking actions to resolve the difference, problem solving process. Determine the criterion or criteria that will be used to evaluate the alternatives. Evaluate the results to determine whether a satisfactory solution has been. Decision making: term associated with the first five steps of the problem-solving process, ends with the choosing of an alternative which is the act of decision making. Single-criterion decision problems: problems in which the objective is to find the best solution with respect to one criterion. Double-criterion decision problems: problems that involve more than one criterion. Analysis phase of decision making process: take two basic forms.
