A formal method of making a choice that might involve both quantitative and qualitative analysis is ________.
A)sunk costs
B)stockout costs
C)carrying costs
D)decision model
E)economic order

Question

Quizplus · Accepted Answer

A decision model is a formal method of making a choice that involves analyzing different options based on both quantitative data (e.g., financial metrics) and qualitative factors (e.g., customer preferences, market trends). The model allows decision-makers to weigh the pros and cons of each option and select the option that offers the greatest potential benefit or the least amount of risk. This approach can help to minimize the impact of biases, emotions, and heuristics in decision-making, leading to more rational and informed choices.

A Formal Method of Making a Choice That Might Involve