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 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.
3hrs of classes (lecture/tutorial) per week
assignment 1 (25%), assignment 2 (25%), final exam (50%)
Basic Algebra, Probability, and Statistics
QBUS5001 or QBUS5002