Decisions made under risk and uncertainty require analyzing alternatives that have probabilistic outcomes. This document discusses decision analysis, where expected values are calculated based on the potential costs and benefits of each alternative weighed by their probabilities of occurring. Managers must understand decision analysis to evaluate choices and select the option with the highest expected value.
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Original Title
Tugas Pertemuan 14 - Decisions Analysis ( Decision Under Risk)
Decisions made under risk and uncertainty require analyzing alternatives that have probabilistic outcomes. This document discusses decision analysis, where expected values are calculated based on the potential costs and benefits of each alternative weighed by their probabilities of occurring. Managers must understand decision analysis to evaluate choices and select the option with the highest expected value.
Decisions made under risk and uncertainty require analyzing alternatives that have probabilistic outcomes. This document discusses decision analysis, where expected values are calculated based on the potential costs and benefits of each alternative weighed by their probabilities of occurring. Managers must understand decision analysis to evaluate choices and select the option with the highest expected value.