Question

Address one of the following questions.

1. What are some of the issues with the use of quantitative methods in an organization?

2. A decision maker is concerned with using decision-making under uncertainty models in a national election. The decision maker is uneasy because some candidates are more probable to win certain states. What course of action would you recommend to the decision maker?

Then, please respond to a student who answered a different question than the one you addressed. Your answer should be 3-4 paragraphs (150-200 words). Responses to other students should be one paragraph (about 50-75 words). Repeating the question does not count as a paragraph.

Answer 1

Answer1: In most of the organizations the quantitative methods are used for business risk assessment, process quality improvements, etc. to understand how the business would have behaved in the past or based on the previous experience or history but cannot say anything about the future. The managers need to use the judgement to interpret the past information and use the same for the current decision making with more randomness and luck to interpret the future. However, the quantitative methods are measured by using the statistical tools but the only shortfall here is to measure the worst-case situation. It is like offering the statistical summary about the distribution rather individualistic event which is not yet occurred. The quantitative techniques are always complex in nature and needed someone to be experienced as well as expert to apply these appropriately. For example, managers in the financial institution or firms should have business domain knowledge to understand the statistical summaries. Whereas, quantitative methods do not represent the extreme events.