Question

Describe the following techniques of decision

making:

a. Decision trees
b. Cost-benefit
c. Cost-effectiveness
d. Networks
e. Linear programming

Answer 1

Decision making techniques include decision trees, cost-benefit analysis, cost-effectiveness analysis, networks, and linear programming

Step-by-step explanation:

Decision making involves various techniques such as:

1. Decision trees: Decision trees are graphical representations of decisions and their possible consequences. They are used to analyze and evaluate different options in a structured manner.
2. Cost-benefit analysis: This technique involves comparing the costs and benefits associated with a decision to determine its feasibility. It helps in assessing the potential advantages and disadvantages of different alternatives.
3. Cost-effectiveness analysis: Cost-effectiveness analysis is used to evaluate the efficiency of different options by comparing their costs and the outcomes achieved. It helps in identifying the most cost-effective solution.
4. Networks: Networks, also known as PERT charts, are graphical representations of activities and their dependencies. They help in scheduling and coordinating complex projects.
5. Linear programming: Linear programming is a mathematical method used to optimize objective functions, subject to linear constraints. It helps in finding the best possible solution to a problem with multiple variables.