Question

Summarize and share a Decision Analysis example that you can find on the Web or with another resource.

Answer 1

Decision analysis helps you to take a decision among the available options based on certain facts and conditions. In the given example, we are given three scenarios which a factory owner finds himself into : whether to sell, maintain status quo or expand the factory. To aid the decision making, we are given the returns for two market conditions - good and poor and the probability of the happening of those market conditions. The amount written in rectangular bracket is the probable returns for each choice based on the weighted average of returns during good and poor conditions