There are types of decisions that do not involve uncertainty or risk and common approaches used for analyzing them. Decisions that use financial analysis, optimization models, and decisions with a single alternative are good examples.

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Explain how payback period, NPV, and IRR criteria are used in decision making.

A.They are used in determining whether or not an investment is worthwhile.
B.Payback period, net present value (NPV) and internal rate of return (IRR) are figures used to evaluate decisions with a single alternative.
C.These are used in the types of decisions that have direct impact on profitability.
D.All the above

Would you explain the decision tree model as A decision tree model is used in making decisions on complex problems represented by a graphical display to find answers?

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The three elements that all queuing systems have in common are:

A.1. Customers 2. Wait 3. Service
B.1. Servers 2. Service 3. Place
C.1. Waiting 2. Line 3. Queue
D.1. Customers waiting for service 2. Servers providing the service 3. A waiting line or queue

Would you list and define the major types of performance measures used in queuing analysis as: 1. The quality of the service provided to the customer 2. The efficiency of the service

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The three types of inputs common to decision models are: Data, uncontrollable variables, and decision variables.

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Describe how to use Excel data tables, Scenario Manager, and goal seek tools to analyze decision models.

A.These tools are used to see the effects of one or two variables on a formula by changing the values in cells to see how those changes will affect the outcome of formulas on the worksheet.
B.These tools are used to cf formulas on the create formulas in a worksheet.
C.These tools are used to see verify models in excel sheets
D.All the above

What-if analysis is the process of changing the values in cells to see how those changes will affect the outcome of formulas on the worksheet.

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Explain the concept of risk analysis and how Monte Carlo simulation can provide useful information for making decisions.

A.Risk analysis is about going out o business. Monte Carlo simulation is a place in Europe
B.Risk analysis is about taking risks in life by using Monte Carlo method
C.Risk analysis is a study of uncertainties in business to estimate the impact. Monte Carlo simulation methods rely on random sampling where samples are "plugged into" a mathematical model and used to calculate outcomes of interest.

With Solver in Excel [Solver add-in], you can find an optimal value for a formula in one cell (objective cell), while being subject to constraints based on values of other formula cells in a worksheet.

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