Subjective and Objective Judgements

Question 1

What is a Subjective Judgement?

Answer 1

A judgement to the effect that the experience of the decision-maker is being affected in some way.

Question 2

What is an objective Judgement?

Answer 2

A judgement to the effect that the world external to it is characterised by a certain quality - the experiences of the decision-maker does not have an impact on the outcome.

Question 3

What is an Accept / Reject choice?

Answer 3

With no budgetary constraint, a decision maker must decide which, if any choices to be made are worthwhile.

Question 4

What is a Ranking choice?

Answer 4

If some form of input is limited in supply, Accept/Reject situations cannot be generalised, so all available choices must be ordered in terms of priority.

Question 5

What is the main issue with Qualitative Decision Methods?

Answer 5

They are generally unsatisfactory due to personal bias or past experiences.

Question 6

What is the Payback Period?

Answer 6

It is the time taken for a project to repay its initial investment.

Question 7

What is Net Present Value (NPV)?

Answer 7

How much money must be invested to achieve a desired amount.

Question 8

What is Net Future Value (NFV)?

Answer 8

How much money can be achieved with a desired investment.

Question 9

What is the NPV Equation?

Answer 9

PV = FV / (1+r) where r = time period

Question 10

What is the NFV Equation?

Answer 10

FV = PV x (1+r) where r = time period