Decisions under uncertainty

Decisions under uncertainty

Bachelor of Business Studies (BBS) — First Year

Subject: Business Statistics (MGT 202)

Unit 11: Quantitative Analysis

Academic Year: 2083/84

Topic Objectives

After studying this topic, students should be able to:

• Explain the scope and key elements of decisions under uncertainty.
• Select suitable statistical procedures, carry out calculations and interpret business results.

Curriculum Scope

• Maximax or optimism
• Maximin or pessimism
• Minimax regret

Detailed Microsyllabus

1. Decisions under uncertainty

   1. Alternatives, states of nature and payoff tables.
   2. Absence of assigned state probabilities.
   3. Distinguish profit maximization from cost minimization.

2. Decision criteria

   1. Maximax and its optimistic orientation.
   2. Maximin and its conservative orientation.
   3. Construct regret tables and apply minimax regret.

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Curriculum reference: Tribhuvan University, Faculty of Management, BBS curriculum with first-year syllabus, PDF pages 14-16.

Source note: The curriculum scope above is retained from the existing TU syllabus breakdown. The numbered study subtopics are editorial elaborations for teaching and study, rather than a separately issued TU syllabus. Unit lecture hours apply to the whole unit; no separate topic hours or marks are assigned here.