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Unit of study_

QBUS6320: Management Decision Making

This unit introduces models and tools for decision analysis and their application in managerial settings. The unit focuses on the use of formal decision methods for management decisions in business. The main goal is to show how these decision models can improve the decision process by helping the decision maker to understand the structure of decisions; use subjective probabilities for measuring risk; analyse the sensitivity of decisions to changing decision parameters; quantify outcomes in accordance with risk attitudes, and estimate the value of information. Special attention is paid to informal interpretations of formal decision approaches.

Code QBUS6320
Academic unit Business Analytics
Credit points 6
Prerequisites:
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QBUS5001 or QBUS5002
Corequisites:
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None
Prohibitions:
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None
Assumed knowledge:
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Basic Algebra, Probability, and Statistics

At the completion of this unit, you should be able to:

  • LO1. recognise the types of problems that decision analysis can and can’t address
  • LO2. identify the values, objectives, attributes, decisions, uncertainties, consequences, and trade-offs in a real decision problem
  • LO3. apply concepts learned in this class (expected value, value of information, risk aversion, and tradeoffs between attributes) to identify good decisions and strategies
  • LO4. represent a decision problem graphically and/or mathematically
  • LO5. develop the skills to determine the optimal decision mathematically
  • LO6. cultivate the aptitude for identifying which parameters have the most impact on the results of an analysis
  • LO7. ripen the expertise of explaining the results of decision analysis to managers and other non-specialists.

Unit outlines

Unit outlines will be available 1 week before the first day of teaching for the relevant session.