In: Operations Management
What is evidence-based decision making? Give an example. Discuss the three ways in which evidence can be used in decision making, and describe when the use of evidence is appropriate.
Solution:
Evidence-based decision making is a type of decision making where the decisions are based on the evidence that is gathered from either past cases of researches in the respective domain. The decisions are carried out based on the underlying assumption that this evidence is reliable. Hence, the decision making that relies on evidence is called evidence-based decision making. Some of the common places where evidence-based decision making is appropriate are stated below,
Hence, these are 3 common domains where evidence based decision making is very valuable.
One should use evidence based decision making when there is very low chanes of commitingerrors and it is desirable to have most effective decision with less data available. In such situations the evidence based decision making is very valuable because it provides much needed direction in which one can work for better results.