Chapter 1

Problem 1 Decision Analysis can be defined as viewing a set of different alternatives and
choosing the right action. For example, when trying to evaluate a problem, usually its most
effective to develop spreadsheets to build computer models of the decision problems to tackle the
problem. This is decision analysis.
Problem 2 A computer model is a set of mathematical relationships and logical assumptions
implemented in a computer as a representation of some real-world decision problems or
phenomenon.
Problem 3 spreadsheet modal (a computer modal implemented via a spreadsheet), a business
person can analyze decision alternatives before having to choose specific plan for
implementation.
A computer model is a set of mathematical relationships and logical assumptions implemented
in a computer as a representation of some real-world decision problems or phenomenon
Problem 4 Management science is a field of study that uses computers, statistics, and
mathematics to solve business problems. Management science is also sometimes referred to as
operation research or decision science.
Problem 5 Management science is a field of study that uses computers, statics and mathematics
to solve business problems but spread sheet modeling is a model in which a person can analyze
decision alternatives before having to choose a specific plan for implementation.
Problem 6 Everyone who uses spreadsheet today for model building and decision making is a
practitioner of management science whether they realize it or not.

Problem 7 Using a spreadsheet model a business person can analyze decision alternatives before
having to choose a specific plan for implementation.
Problem 8 The benefits of using a modeling approach are as follows:
The models are usually simplified version of the object or decision problem they represent
It is often less expensive to analysis decision problem
It often delivers the needed information on a timelier basis
They models are frequently helpful in examination things that would be impossible to do in
reality
Finally an d probably most important modal allow us to gain inside and understanding about
the object or decision problem under investigation
Problem 9 A dependent variable is that which depends on other variables. For example
Profit= revenue expenses
In the above equation profit is dependent variable because it depends on revenue and expenses
Problem 10 The independent variable is that which does not depend on other variables. For
example
Profit= revenue expenses
In above equation revenue and expenses are independent variables and do not depend on each
other.

Problem 18 Figure 1.2 will probably closely resemble a prescriptive model because the variables
i.e. dependent and independent are well defined and the independent variables are known to the
decision maker and the decision maker can make adjustments to it as well.
Problem 22 If I were given the choice to select a model amongst many choices, I would probably
choose the best model that best fits the situation at the time. Usually the simplest ones are the
best and it really depends on situation to situation.
Problem 25 The underlying problem or scenario in this given example is that sharks exist and are
present in the beach so one cannot say that it was a good decision to go swimming that day. I
would say its a bad situation and both individuals should not have gone to the beach. Its a loselose situation for both individuals.
Problem 26 During the Soviet War, the Afghani people were severely displaced due to the
Russians occupying Afghanistan and Pakistan made a good decision to help shelter the refugees
in their own homeland but resulted in a bad situation because 2-3 million Afghani refugees were
now in Pakistan still displaced and an unaccounted for creating civil unrest during the 90s.
A bad decision that resulted in a good outcome could be that the current political party
running in Pakistan i.e. Imran Khan decided to give his speech in a tribal area where there were
dangerous accusations of assassinations, he still decided to deliver the speech and won the votes
of many supporters in the area.