- Quantitative decision making methods can be used when:
There is a clearly stated objective.
There are several alternative courses of action.
There is a calculable measure of the benefit or worth of the various alternatives.
Uncertainties for which allowance must be made or probabilities calculated may include
Events beyond the control of the decision maker.
Uncertainty concerning which outcome (or external events) will actually happen.
Given the above conditions, standard statistical techniques using normal distribution data and probability calculation can be used to inform decision making.
MARKOV CHAIN - http://www.slideshare.net/ashishtqm/m-a-r-k-o-v-c-h-a-i-n
MATRICES
The beginnings of matrices goes back to the second century BC although traces can be seen back to the fourth century BC. However it was not until near the end of the 17th Century that the ideas reappeared and development really got underway.
It is not surprising that the beginnings of matrices and determinants should arise through the study of systems of linear equations. The Babylonians studied problems which lead to simultaneous linear equations and some of these are preserved in clay tablets which survive. - http://www.slideshare.net/ashishtqm/matrices-2534551
SENSITIVITY ANALYSIS
What Does Sensitivity Analysis Mean?A technique used to determine how different values of an independent variable will impact a particular dependent variable under a given set of assumptions. This technique is used within specific boundaries that will depend on one or more input variables, such as the effect that changes in interest rates will have on a bond's price.Sensitivity analysis is a way to predict the outcome of a decision if a situation turns out to be different compared to the key prediction(s).
