Multistage decision making under risk, Managerial Accounting

Multi-stage decision making under risk (The use of decision trees)

Sequencing is concerned with the selection of an appropriate sequence or order of performing a series of jobs to be done on a finite number of machines or service facilities in some well defined technological order so as to optimize some measure of performance of the system, such as minimizing overall cost, total elapsed time. Decision trees are employed in solving sequential problems where there is an element of uncertainty. We use expected values to find the best alternative.

A decision tree is valuable for many reasons including:

  1. It provides a pictorial representation of a sequential decision process.
  2. It makes the expected value calculations easier because these calculations can be performed directly on the tree diagram.
  3. The actions of more than single decision maker can be considered.

 

Posted Date: 12/4/2012 7:15:57 AM | Location : United States







Related Discussions:- Multistage decision making under risk, Assignment Help, Ask Question on Multistage decision making under risk, Get Answer, Expert's Help, Multistage decision making under risk Discussions

Write discussion on Multistage decision making under risk
Your posts are moderated
Related Questions

The std cost of chemical mixture~PQ is as follows: 40% of material P @rs.400/kg 60% of material Q @rs.600/kg A std loss of 10% is normally anticipated in pdn. The followinng parti

Pricing is a problem in four general types of situations: 1) When the firm develops or introduces a new product and it is fix the price of the product for the first time. 2)

where can I get the solution for the question on this link: http://www.expertsmind.com/questions/determine-the-cash-flow-budget-monthly-cash-disbursement-30145416.aspx I have att

Compute the value of share of a company? A company paid dividend amounting to Rs. 0.75 each share during the last year. The company is supposed to pay Rs. 2.00 per share throug

a cost-allocation base may be any of the following except: a. cost driver b. cost pool c. way to link indirect cost to a cost object d. nonfinancial quantity


Application of Transportation Model In the direct logic, the transportation model looks for the determination of a transportation plan of a particular commodity from a number o

On 1st January, 2005 the Board of Directors of Paushak Limited needed to identify the amount of working capital needed to meet the programme they have arranged for the year. From t

Suppose the consumer is at coffee shop 2. Coffee shop 2 provides unlimited cups of coffee for the price of $9.00 per day. - How many cups would she drink a day and how much woul