Business Decision Making: Techniques and Methods

BA5F01
BUSINESS DECISION-
MAKING

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
QUESTION 1..............................................................................................................................3
QUESTION 2..............................................................................................................................3
QUESTION 3..............................................................................................................................5
QUESTION 4..............................................................................................................................6
QUESTION 5..............................................................................................................................7
QUESTION 6..............................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business decision making involves a lot of evaluation of various available alternatives. The
proper and reliable evaluation must be done to arrive at a decision which fulfils the requirements
of business. The achievement of business motive to earn more profit with minimum costs can
only be possible through the use of those techniques which helps in deciding what to do and not
to do. Here in this report all such techniques which are helpful in business decision making are
discussed.
MAIN BODY
QUESTION 1
Tally and frequency distribution
Number of
Absentees
Tally marks frequency FX
2 II 2 4
3 I 1 3
4 IIII 4 16
5 III 3 15
6 IIII 4 24
7 II 2 14
8 III 3 24
9 I 1 9
QUESTION 2
7,11,11,15,20,20,28,29,35,15,36,54,22,45,32,11,15
Data(X) Tally marks Frequency(F
)
FX X-x ̄ (X-x ̄)2 F(X-x ̄)2
7 I 1 7 -16.88 284.93 284.93

11 III 3 33 -12.88 165.89 497.68
15 III 3 45 -8.88 78.85 236.56
20 II 2 40 -3.88 15.05 30.11
22 I 1 22 -1.88 3.53 3.53
28 I 1 28 4.12 16.97 16.97
29 I 1 29 5.12 26.21 26.21
32 I 1 32 8.12 65.93 65.93
35 I 1 35 11.12 123.65 123.65
36 I 1 36 12.12 146.89 146.89
45 I 1 45 21.12 446.05 446.05
54 I 1 54 30.12 907.21 907.21
TOTAL N=17 ∑FX=406 2785.76
Mean: Mean is the average value of the given data. It is calculated by dividing the sum of the
given values with the number of values. Mean is indicated as x̄.
Mean = Sum of the given observation / Total number of observation
The formula to calculate mean is (x1 + x2 + .... + xn) / n= ∑ xi / n
Here in this question we have sum of the observations equals to 406, which is being divided by
the total number of observations that is equals to 17.
x̄= ∑ FX/ n
x̄ =406 / 17
x̄ =23.88
Median: Median is the middle value in the series of data sorted in either ascending or
descending order. If the number of observations are odd, then the value just in the middle of the
series is taken as median with the equal amount of observations above and below the median