BUSOBA 2321 MIDTERM PRACTICE SCRIPT 2026 COMPLETE SOLUTIONS GRADED A+

BUSOBA 2321 MIDTERM PRACTICE SCRIPT
2026 COMPLETE SOLUTIONS GRADED A+

⩥ characteristics of good decisions. Answer: - based on logic
- considers all possible alternatives
- examines all available information about the future
- sometimes result in unfavorable outcomes


⩥ characteristics of bad decisions. Answer: - does not consider
alternatives
- does not use all available information
- sometimes yield favorable results


⩥ five steps in decision analysis. Answer: - define the problem
- list all possible alternatives
- identify possible outcomes for each decision alternative
- identify the payoff for each combination
- select a decision analysis modeling technique, apply the model, and
make the decision


⩥ types of decisions. Answer: - strategic
- tactical

, - operational


⩥ strategic decisions. Answer: take a long time and have significant
consequences for incorrect decisions


⩥ tactical decisions. Answer: take a significant amount of time and can
have high consequence for incorrect decisions


⩥ operational decisions. Answer: take a limited amount of time but have
low consequences for incorrect decisions


⩥ payoff table. Answer: - decisions in rows
- states of nature in columns
- values can be positive (profit) or negative (loss)


⩥ maximax criteria (aggressive behavior). Answer: - create an additional
column ("maximum")
- determine the maximum payoff for each decision (row)
- choose the maximum value in the "maximum" column


⩥ maximin criteria (conservative behavior). Answer: - create an
additional column ("minimum")
- determine the minimum payoff for each decision (row)