Linear decision making | Marketing homework help
Conduct an Internet search for information on linear decision-making. Then, discuss your findings and contrast it with what the authors offer in the textbook. Next, discuss how a linear decision-making model could have helped you in making a past decision.
The course book is Chapter 11
Bazerman, M. H., & Moore, D. A. (2009). Judgment in managerial decision making (7th ed.). Hoboken NJ: John Wiley & Sons, Inc.
These is part of the study guide which it talks about linear model to help you until I do the attachment tomorrow
The authors argue that, to improve decision-making, we must use decision-analysis tools. Decision analysis is typically driving by the determination of expected value. This helps to answer such questions as “what can I expect to gain, if I make a decision based on what I know right now?”. The problem that we face is that many decisions are not based on cut and dried, objective probability. Rather, we face different levels of certainty/uncertainty and our biases can and do come into play. To overcome these problems, the authors suggest using a linear decision making model. Through these models, a decision maker applies “a formula that weights and adds up the relevant predictor variables…to make quantitative predictio”. A linear approach to decision making can help decision makers in making repetitive decisions, since they provide predictable results time after time. Also, by using such a model, the decision maker uses the more objective data. This helps to reduce how bias, moods, and other more subjective variables may cloud a decision maker’s judgment.