Business Decision Making

BUSINESS DECISION
MAKING

Table of Contents
INTRODUCTION...........................................................................................................................3
QUESTION 1...................................................................................................................................3
Frequency Table..........................................................................................................................3
QUESTION 2...................................................................................................................................4
1. Mean........................................................................................................................................4
2. Median....................................................................................................................................4
3. Mode.......................................................................................................................................5
4. Range......................................................................................................................................5
5. Variance..................................................................................................................................5
6. Standard Deviation..................................................................................................................6
QUESTION 3...................................................................................................................................6
Network Diagram........................................................................................................................6
Critical Path.................................................................................................................................6
QUESTION 4...................................................................................................................................7
Payback Period............................................................................................................................7
QUESTION 5...................................................................................................................................7
Non Discounted Cash Flow Methods.........................................................................................7
QUESTION 6...................................................................................................................................8
Discounted Cash Flow Methods.................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business decision making is a crucial activity for any given organisation where there needs
to be a thorough analysis of the existing options that a management has and then selecting the
most profitable one (Dubey, Kothari and Awari, 2016). In this report, various concepts and
calculations related to business decision making will be carried out accordingly.
QUESTION 1
Frequency Table
2, 2, 3, 4, 4, 4, 4, 5, 5, 5, 6, 6, 6, 6, 7, 7, 8, 8, 8, 9
The recorded data on the number of students can be segregated into class intervals and
these can then be classified and counted as per their frequency of occurring. This can be done in
following manner:
STUDENTS
PRESENT (X)
TALLY FREQUENCY FX (X - X̄ ) (X - X̄ )2 F (X - X̄ )2
2 II 2 4 -3.45 11.90 23.8
3 I 1 3 -2.45 6 6
4 IIII 4 16 -1.45 2.10 8.4
5 III 3 15 -0.45 0.20 0.6
6 IIII 4 24 0.55 0.30 1.2
7 II 2 14 1.55 2.40 4.8
8 III 3 24 2.55 6.50 19.5
9 I 1 9 3.55 12.60 12.6
TOTAL 20 109 76.9
Mean: X̄ / N = 109 / 20 = 5.45
Median: 5
Mode: 4, 6
Range: 9 – 2 = 7
Therefore, as it can be clearly seen, the interval with highest frequency is of the students
who are absent for an average period of 4 to 6 days approximately in past 20 days of recorded
data. This is an indicative of the presence that students shows towards their classes.