using data and logic, eg using big data sources, technology with software logic and forecasts
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What is a decision tree?
a mathematical model used to help managers to make decisions
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What is the role of decision trees?
it uses estimates and probabilities to calculate likely outcomes. Helps to decided whether the net gain from a decision is worthwhile.
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What are the benefits of decision trees?
choices are set out in a logical way, different choices are considered at the same time, probabilities enables the 'risk' of decisions to be assessed, easy to understand, tangible results.
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What are the drawbacks of decision trees?
probabilities are just estimates so prone to error, ignores the qualitative aspect of making decisions, assigning probabilities are prone to bias, making a decision using a tree doesn't necessarily reduce the amount of risk.
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What is a stakeholder?
groups or individuals that are affected by and/ or have an interest in the operations and objectives of the business
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What is stakeholder mapping?
A matrix used to determine how a business should respond to the influence a stakeholder may have. compares their degree of interest and of power to determine how a business should respond
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Other cards in this set
Card 2
Front
What is a decision tree?
Back
a mathematical model used to help managers to make decisions
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