Quantitative Methods in Decsion Making Essay

1584 WordsMar 4, 20137 Pages
Decision Making Betty Pittman Grand Canyon University Quantitative Methods November 16, 2011 Decision Making Analytics competitors are leaders in their varied fields consumer products, finance, retail, and entertainment. For organizations to become and prosper as an analytics competitor they must use analytics data because many industries offer similar products and use comparable technologies, business processes are among the last remaining points of differentiation. And analytics competitors use every possible analytics value from these processes. In order for organizations to prosper they must know what products their customers want, what prices those customers will pay, how many items each will buy…show more content…
Quantitative analysis can allow decision maker to put a “price” on the sum total of qualitative characteristics. For example, suppose Air Trans’ controller gives top management a quantitative analysis showing that by the elimination of the flight to Rome will increase annual profits by $2,000,000. But the quantitative considerations favor the option of continuing the Rome flight. If the top managers decided to continue the flight to Rome, the quantitative consideration must be worth at least $2,000,000 to them. The quantitative consideration is the essence of management decision making process. The skill, experience, judgment, and ethical standards of managers all come to bear on difficult choices. In reading this article and other articles I’ve learned there are three criteria that stood out for me that played an important role in quantitative analysis when decision are to be made and they are relevance, accuracy, information that is pertinent to a decision problem must also be accurate, or it will be of little use. In other words, highly accurate but irrelevant data are of no value to top management when making decisions. Timeliness is the third important criterion for determining the usefulness of information. A long wait for accurate information can delay management’s decision. The views that I have formulated from reading these articles has supplemented the views I have about quantitative

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