Decision making

The first step in the decision making process is...

• identify alternatives

• identify the decision

• gather information

• take action

Аmong the listed decisions, find a non- programmed decision

• procedure for the payment of bonuses

• a selection of freight routes for product deliveries

• a selection of a new manager from candidates using job interview

• develop a new product or service

Which kind of desicion making conditions means that all the information the decision maker needs is fully available?

• Certainty

• Risk

• Uncertainty

• Ambiguity

Which kind of desicion making conditions means that the goals to be achieved or the problem to be solved is unclear, alternatives are difficult to define, and information about outcomes is unavailable?

• Certainty

• Risk

• Uncertainty

• Ambiguity

Which kind of desicion making conditions means that managers know which goals they wish to achieve, but information about alternatives and future events is incomplete?

• Certainty

• Risk

• Uncertainty

• Ambiguity

Which kind of desicion making conditions means that a decision has clear-cut goals and that good information is available, but the future outcomes associated with each alternative are subject to chance?

• Certainty

• Risk

• Uncertainty

• Ambiguity

Solve the problem.

You have 1 million rubles available for you to invest in the development of a new product or to conduct an advertising campaign for an existing product.

In the case of a successful advertising campaign with a probability of 60%, you will receive 3 million profits, otherwise, only 1 million rubles.

For a new product, the probability distribution and expected profit: 4 million rubles with a probability of 20%, otherwise 2 million rubles.

Choose an investment option

• development of a new product

• advertising campaign

A decision making model based on

the assumption that managers

should make logical decisions that

will be in the organization’s best

economic interests is

• administrative model

• classical model

• political model

A decision tree model is used when making decisions in conditions

• certainty

• uncertainty

• ambiguity

• risk

What costs do not depend on the number of products?

• Fixed costs

• Variable costs