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Questions and Answers
What technique involves examining collected information in ways that reveal relationships, patterns, and trends found within it?
What does sensitivity analysis allow quantitative analysts to do?
What roadblock do quantitative analysts face in developing a solution according to the text?
To offset the limitation of QA models giving only one solution, what strategy is suggested in the text?
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What is the first step suggested in planning and conducting surveys according to the text?
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What technique involves coming up with alternative scenarios to give managers options to choose from?
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Which decision strategy involves looking at the worst possible outcome for each course of action and selecting the one with the largest value?
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What does the Laplace strategy involve in decision-making?
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In decision-making, what does the maximax strategy focus on?
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Which decision strategy involves multiplying the best outcome by α and the worst outcome by 1-α in decision-making?
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What is the primary focus of the minimax regret strategy in decision-making?
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How does the Hurwicz strategy differ from Laplace strategy in decision-making?
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What is the key principle behind the minimax regret strategy?
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In the decision-making process, which step involves analyzing the results of a solution?
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What type of data is concerned with attributes and properties that can't be measured?
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Which strategy involves subtracting the entry from the highest column value to compute an opportunistic loss for each alternative?
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What is the main goal of the maximin strategy in decision-making?
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Which step in the decision-making process involves developing a solution based on the defined problem?
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Study Notes
Decision Making Strategies
- Applying the maximax strategy involves looking at the best that could happen for each possible course of action and then choosing the action with the largest value.
- Applying the maximin strategy involves looking at the worst that could happen for each possible course of action and then choosing the action with the largest value.
- Applying the Laplace strategy involves calculating the average of each alternative and then choosing the alternative with the largest average.
- Applying the Hurwicz strategy involves multiplying the best outcome in the row by the given value of α, multiplying the worst outcome in the row by 1-α, and adding the two results together.
- Applying the minimax regret strategy involves computing an opportunistic loss (or regret) of each alternative by simply subtracting the entry from that of the highest column value and selecting the maximum regret value of each row.
The Quantitative Analysis Approach
- The quantitative analysis approach involves 7 steps: defining the problem, developing a model, acquiring input data, developing a solution, testing the solution, analyzing the result, and implementing the results.
- Types of models include iconic models, analog models, and mathematical models.
Data Types
- Qualitative data is about attributes and properties and is concerned with data that is observable in terms of smell, appearance, taste, feel, texture, gender, nationality, and so on.
- Ordinal data involves some kind of order or scale relationship among the variable's observations.
Model Development
- Potential pitfalls in developing a model include understanding the model, mathematical model, and acquiring data.
- Fitting the textbook model requires manipulation of the model variables in order to determine the solution that is practical and can be implemented.
- Manipulation can be done by solving equations, trial and error, complete enumeration, or using an algorithm.
Analyzing Data and Sensitivity Analysis
- Analyzing data involves examining the collected information in ways that reveal the relationships, patterns, trends, etc.
- Sensitivity analysis allows a series of "what-if" questions to be answered for it to determine possible changes in the various parameters of the original problem.
Planning and Conducting Surveys
- Determine the goal of your survey: what do you hope to gain from your survey?
- The questions you ask all need to point back to this essential idea.
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Description
Learn about the maximax strategy in decision making, which involves selecting the course of action with the largest potential payoff by considering the best possible outcomes for each alternative. This quiz provides examples and calculations to help you understand how to apply the maximax strategy in decision environments.
