Question

Hello,

• apply the terminology of decision making to describe business problems
• compare and contrast deterministic and probabilistic models

Action Items

• Using the definitions found in Chapter 1 of Quantitative Analysis, the Internet, and your own personal experiences, make notes on and post one example of each of the following to the class Discussion Board topic "Deterministic and Probabilistic Models".
  • A deterministic model;
  • A probabilistic model; and
  • A situation in which you could use post optimality analysis (also known as sensitivity analysis).

Submission Instructions

Complete and submit this assignment per your professor's instructions.

Grading Criteria

Answer 1

Answer:

Deterministic Model:

It is inverse  to random. It said  that some future occasion can be determined  exactly, without the involvement of randomness. With deterministic model, we could predict a result  with 100% certainty.

Probabilistic Model:

A probabilistic technique or model depends on the hypothesis of likelihood or randomness. The Deterministic is very inverse to this. Probabilistic models join irregular factors and probability distributions into the model of an phenomenon or occasion. While a deterministic model gives a single possible result for an occasion, a probabilistic model gives a likelihood distribution as an answer. These models consider the way that we can once in a while know it about a situation.

Post optimality investigation/Sensitivity Analysis:

This gives the dynamic traits with important parameters and limitations. This can be applied in multi criteria decision making, business decision making, production planning,time criteria decision making.linear programming.