NATIONAL OPENUNIVERSITY OF NIGERIA

PLOT 91, CADASTRAL ZONE, NNAMDI AZIKIWE EXPRESS WAY, JABI – ABUJA
FACULTY OF MANAGEMENT SCIENCES
DEPARTMENT OF BUSINESS ADMINISTRATION
2019_1 EXAMINATION
COURSE CODE: BUS426 CREDIT UNIT: 3
COURSE TITLE: ANALYSIS FOR BUSINESS DECISIONS
TIME ALLOWED: 21/2HRS
INSTRUCTIONS:
1. Attempt Question One (1) and any other three (3) questions
2. Question 1 carries 25 marks, while the other questions carry 15 marks each.
3. Present all points in coherent and orderly manner

1a. What is a decision? (15 marks)

b. Who is a decision maker? (10 marks)

2a. What is a state of nature, and how does it affect decisions? (10 marks)

b. As the transport consultant to NOUN Limited, explain the difference between the result
obtained from the least cost method and from north-west corner method. (5 marks)

3. Contrast a deterministic analysis from probabilistic analysis (15 marks)

4a. Discuss possible errors that can arise in decision making exercise. (10 marks)

b. Advise decision makers on how to minimize these errors. (5 marks)

5. There are four (4) phases of decision analysis that flow in order of succession. Discuss the first
three (3) of them. (15 marks)

1
6a. Draw the network having the following activity units. (15 marks)

Activity Predecessor Completion time Activity Predecessor Completion time

(weeks) (weeks)

A None I C 3
B A 2 J D 6
C A 4 K G 3
D A 3 K H 3
E B 2 L I 7
F B 1 L J 9
G E 2 L K 4
H F 1

b. Determine the latest completion time. (10 marks)