scientific decision making

Question 1

what are the two ways in which decisions can be made

Answer 1

scientific data or
based upon intuition and past experiences

Question 2

advantages of scientific decision making

Answer 2

reduces the risk of making mistakes as decisions based on data
using data provides guidance for managers who may have limited intuition through lack of experience

Question 3

disadvantages of scientific decision making

Answer 3

time consuming to collect data required
relying on data means expertise and experience of staff may not be considered
using out of date or poor data is unreliable and can affect the quality of the decsion made

Question 4

factors influencing decision making

Answer 4

availability and reliability of data- if data is unavailable then this approach cant be used.
managers experience is vital, inexperiences managers are more likely to use scientific decisoon making due to limited experience
the risk a business is willing to accpet, scientifc carries less risk

Question 5

what does a decision tree allow

Answer 5

allows a business to compare outcomes of two or more options or decisions
will examine the probability of each outcome for each decision made
will multiply the probability with each outcome to calculate an estimated value for each option or decision being considered