Podcast
Questions and Answers
What is the first step in the decision-making process?
What is the first step in the decision-making process?
- Define the goals or objectives
- Collect all the relevant information
- Recognize a decision problem (correct)
- Select the best alternative
What financial data is required to make an economic decision according to the text?
What financial data is required to make an economic decision according to the text?
- Gather technical and mechanical data
- Collecting irrelevant data
- Minimal cash outlay (correct)
- Choose between Saturn and Honda
Why is focusing on the differences among alternatives important in decision-making?
Why is focusing on the differences among alternatives important in decision-making?
- To make the decision more complex
- To consider irrelevant factors
- To distract from the main objectives
- To simplify the decision process (correct)
What does 'use a consistent viewpoint' mean in the context of decision-making?
What does 'use a consistent viewpoint' mean in the context of decision-making?
Why is selecting the best alternative considered one of the final steps in decision-making?
Why is selecting the best alternative considered one of the final steps in decision-making?
In the context of decision criterion selection, what should be avoided when developing alternatives for analysis according to the text?
In the context of decision criterion selection, what should be avoided when developing alternatives for analysis according to the text?
What are some examples of objectives other than profit maximization or cost minimization that can be important to an organization?
What are some examples of objectives other than profit maximization or cost minimization that can be important to an organization?
According to Step 4, what will the decision maker normally select?
According to Step 4, what will the decision maker normally select?
What is largely based on cash-flow estimates for the feasible alternatives selected for detailed study?
What is largely based on cash-flow estimates for the feasible alternatives selected for detailed study?
What is an essential part of an engineering economy study according to Principle 6?
What is an essential part of an engineering economy study according to Principle 6?
Which factor often requires a substantial effort to obtain reasonably accurate forecasts in an engineering economy study?
Which factor often requires a substantial effort to obtain reasonably accurate forecasts in an engineering economy study?
What is incorporated in Step 5 for detailed study of alternatives?
What is incorporated in Step 5 for detailed study of alternatives?
What is the advantage of using a common unit of measurement when analyzing and comparing alternatives?
What is the advantage of using a common unit of measurement when analyzing and comparing alternatives?
Why is it important for decision making to consider outcomes expressed in different units of measurement?
Why is it important for decision making to consider outcomes expressed in different units of measurement?
What role does uncertainty play in the analysis of future outcomes of alternatives?
What role does uncertainty play in the analysis of future outcomes of alternatives?
How does improved decision making result from revisiting decisions?
How does improved decision making result from revisiting decisions?
What is one important application of engineering economy according to the text?
What is one important application of engineering economy according to the text?
What does engineering economy aim to discover regarding projects or ventures?
What does engineering economy aim to discover regarding projects or ventures?
