PMF5

Syllabus C6. Dealing With Risk And Uncertainty In Decision-Making 7 / 7

a) Suggest research techniques to reduce uncertainty e.g. Focus groups, market research.
b) Explain the use of simulation, expected values and sensitivity.
c) Apply expected values and sensitivity to decision-making problems.
d) Apply the techniques of maximax, maximin, and minimax regret to decision-making problems including the production of profit tables.
e) Interpret a decision tree and use it to solve a multi-stage decision problem.
f) Calculate the value of perfect and imperfect information.
Dealing With Risk And Uncertainty In Decision-Making