Chapter 1

Role of Mathematics and statistics in Business Decisions Dsouza -Prepared by Suzan

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Index
Topic

Page

no.
Decision

contaminants...3 Describe managerial decision making system....4 Explain managerial decision making environment..5-6 Phases of Decision making ..7-9 Academy of Managment and Professional Development Summary ....10

 Decision Contaminants.

1.Dishonesty Trying to obtain someone elses

decision . 2.Inertia Skipping the study of facts because it is not important. 3.Impatience Skipping the process of analysis and reaching a conclusion without any backup reasoning. 4.Acquiescense- Doing everything as asked without questioning the logic. 5. Gambling Trying to fit decision variable configurations in the process of decision making by trial and error ; assuming that the problem cannot be solved. 6. Semantics- Calling the decision making situation totally absurd, very tough , too much time consuming. Academy of Managment and Professional 7.Falsification not being able to solve the problem, Development illegible recording of calculations and final outcomes.

 Managerial decision making system.

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 Managerial decision making environment.

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 Managerial decision Models and Algorithms.

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 Problem Definition

Problem definition is a cultural artifact which is especially visible in a societys economic and industrial decision making process. If such cultural determinants are operative in the first phase of managerial decision making, their effect can be noticed at various stages in the process . Conceptual Models The conceptual model represents the logic that underlies a decision. Based on this logic the quantitative model, and specific algorithms are constructed. Quantitative Models Once the conceptual model has been properly designed , the quantitative model and its algorithms should almost flow out of it. The transition is natural , smooth, almost automatic . The quantitative model is selected from the many such models that have been designed by mathematicians .
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 Algorithm

The criteria for algorithm selection, once the quantitative model has been decided upon, rest with the methodological efficiency of the algorithm but also at times with decision makers training and preference for one over the other method .The algorithm must render itself applicable to computerization and must result in optimization. The Decision The decision is the end product of a sequence of mental activities .
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Summary
Decision making occurs in all fields of human

endeavor. Inertia and impatience are the two most common flaws in decision making.
The conceptual model represents the logic that

underlies a decision . To make a decision does not necessarily mean that it gets carried out.

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