Quantitative Decision Making
Quantitative decision making methods can be used when:
- There is a clearly stated objective.
- There are several alternative courses of action.
- There is a calculable measure of the benefit or worth of
the various alternatives.
Uncertainties for which allowance must be made or probabilities
calculated may include
- Events beyond the control of the decision maker.
- Uncertainty concerning which outcome (or external events)
will actually happen.
Given the above conditions, standard statistical techniques
using normal distribution data and probability calculation can
be used to inform decision making.
Reference
- Levin, Richard. I., 1984, "Statistics for Management",
Prentice-Hall, New Jersey. (Prentice-hall International Series
in Management)
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