Question

What is a decision model? Why is it important to business? What are the three types of inputs common to decision models?

Answer 1

Decision model system is a computer based system which predicts the outcomes of decisions which share the relationship between the elements of the decision and forecasted results there by understanding the control problem.

It is important for businesses as they could handle large amount of data and with sophisticated algorithms that help companies for improving their corporate performance which helps for opening new pathways.

Three type of inputs are :-

1) Data

2) Uncontrollable variables

3) Decision variables