Decision Making - Study Material with Solved Assignments

Running Head: DECISION MAKING
Decision Making
Name of the Student
Name of the University
Author Note

1DECISION MAKING
Table of Contents
Answer 1..........................................................................................................................................3
Part a............................................................................................................................................3
Part b............................................................................................................................................3
Part c............................................................................................................................................3
Part 1............................................................................................................................................3
Part 2............................................................................................................................................3
Part 3............................................................................................................................................4
Part 4............................................................................................................................................4
Part 5............................................................................................................................................4
Part 6............................................................................................................................................4
Part d............................................................................................................................................4
Part 1............................................................................................................................................4
Part 2............................................................................................................................................4
Part 3............................................................................................................................................5
Part 4............................................................................................................................................5
Answer 2..........................................................................................................................................5
Part 1............................................................................................................................................5
Part 2............................................................................................................................................5
Part 3............................................................................................................................................6

2DECISION MAKING
Part i.............................................................................................................................................6
Part ii............................................................................................................................................6
Part iii...........................................................................................................................................6
Part iv...........................................................................................................................................6
Answer 3..........................................................................................................................................6
Part a............................................................................................................................................6
Part 1............................................................................................................................................6
Part 2............................................................................................................................................7
Part 3............................................................................................................................................7
Situation 1....................................................................................................................................7
Situation 2....................................................................................................................................7
Situation 3....................................................................................................................................8
Part b............................................................................................................................................8
Reference.......................................................................................................................................10

3DECISION MAKING
Answer 1
Part a
Probability can be defined as the ratio of an outcome to the total number of outcomes.
It is measured as ratio.
Probability can take all values between 0 and 1.
Part b
The condition when the existence of an event or outcome does not in any way affect the
existence of another event or outcome is known as statistical independence.
Statistical independence is identified by testing for the independent occurrence of two events.
Part c
Part 1
Sales
Units
(x)
No.
of
days
p(x) Exp value More
than
Les
than [x-E(x)]2 [x-E(x)]2 p
(x)
0 5 0.05 0 100 5 0.000 0.000
1 15 0.15 0.15 95 20 0.723 0.108
2 20 0.2 0.4 80 40 2.560 0.512
3 25 0.25 0.75 60 65 5.063 1.266
4 20 0.2 0.8 35 85 10.240 2.048
5 15 0.15 0.75 15 100 18.063 2.709
Total 100 1 2.85 Varianc
e 6.643
Standard
Deviation 2.577
Part 2
The average daily sales = 2.85