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What is the problem and objective of decision

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Reference no: EM133122757

Scenario: You are a business owner faced with an important decision that could potentially be very lucrative. Keep in mind the "Six Steps in Decision Making" as you set-up your decision analysis. 

  1. What is the problem and objective of this decision?
  2. Identify at least 3 alternatives and 3 states of nature.
  3. Create a decision table in Excel.
  4. Identify the potential payoff/losses for each alternative and state of nature and include in your decision table.
  5. Choose two decision strategies and determine the best alternative: (Clearly state the best alternative for each strategy.)
    • Optimistic
    • Pessimistic
    • Criterion of Realism (Hurwicz)
  6. Why did you choose the two strategies? What are the results of the best alternative? What is your final decision?

Reference no: EM133122757

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