Prescriptive decision models help:
A) make predictions of how demand is influenced by price.
B) make trade-offs between greater rewards and risks of potential losses.
C) decision makers identify the best solution to decision problems.
D) describe relationships and influence of various elements in the model.

Question

Quizplus · Accepted Answer

Prescriptive decision models are designed to identify the best solution among alternatives based on specific criteria or objectives. They help decision-makers to optimize their decision-making process and achieve desired outcomes. Option A refers to predictive decision models that focus on forecasting future events based on past data. Option B refers to decision models that involve risk analysis and trade-offs between possible gains and losses. Option D refers to descriptive decision models that describe and summarize data without providing any recommendations.

Prescriptive Decision Models Help