Decision Analysis: Starting Right Corporation August 26, 2014
Unit II Case Study:
Decision Analysis: Starting Right Corporation
Methods of Analysis for Business Operations MSL 5080-13D-3
Gerald A. Thomas SID #15533
Decision Analysis: Starting Right Corporation August 26, 2014
According to Render, Stair, & Hanna, M. E. (2012), “When several states of nature exist
and a manager cannot assess the outcome probability with confidence or when virtually no
profitability data are available, the environment is called decision making under uncertainty.
Several criteria exist for making decisions under these conditions. The ones that we cover in this
section are as follows:
1. Optimistic (maximax)
2. Pessimistic (maximin)
3. Criterion of realism (Hurwicz)
4. Equally likely (Laplace)
5. Maximax regret
