Quantitative Analysis for Management
LP1 Assignment: Drink at Home Decision Tree
This assignment will assess the following competencies:
1. Evaluate the best fit of information in the decision making process.
3. Analyze the rules of probability in real situations and how to make decisions accordingly.
Before completing this assignment you will need to download QM for Windows, or Excel QM.
Go to the Quantitative Analysis for Management, 12th ed., Additional Book Resources.
Download QM for Windows, or Excel QM and the Internet Case Studies here:
1) Complete the Internet Case Study 03-01, “Drink-At-Home, Inc.”
(Hint: you will need to create a decision tree in Excel QM or POM/QM for windows)
Please use excel QM (download it from the link above) to create a decision tree.
2) What is the difference between a prior and a posterior probability? Be sure to include discussion of the Bayes Process/Theorem and how this is used with the types of probabilities (hint: g 29)
The correct answer is only worth 10% of the grade on this assignment; 90% of your grade on this assignment will be the explanation and work. Please explain why you chose the method or formula and provide a detailed explanation regarding the outcome or solution. Provide a minimum of 3-5 sentences discussing your logic and how you came to your answer.
(see the case study attached)