Abstract: The objective of this chapter is to further demonstrate the need for using probability in managerial decision-making. To accomplish this, a general decision-making process is defined along with the essential concept of using a decision tree to map out decisions and uncertainty. As decision trees require measuring uncertainty, fundamental elements of probability are defined in this chapter. Simulation examples are used to further explain the role of probability in managerial decision-making and to demonstrate the usefulness of simulation for resolving issues in understanding uncertainty and probability.
Publication Year: 2017
Publication Date: 2017-01-01
Language: en
Type: book-chapter
Indexed In: ['crossref']
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