MANAGERIAL DECISION ANALYSIS (Business 260)

San Jose State University M.B.A. Program

BBC 022, Class Number 21157, Wednesday

 

Three major analytical tool sets for managers are developed, including: decision analysis, forecasting, and linear programming.  Also covered are simulation, project management, queuing, and game theory.  The goal of the course is to develop quantitative skills that can be applied to business functions such as marketing, finance, and management.  A statistics class is a prerequisite.

 

Instructor: G. Kent Webb, Email:  g.webb@sjsu.edu   Phone: 408 924-1348.

Office: BT-253. 

 

Optional Text: Quantitative Decision Making with Spreadsheet Applications, Lapin and Whisler, seventh edition.   All course material for the class is available on the class website.  No book has been ordered for the class, but there are links on my main page for buying used or electronic versions if desired.  Email me if you have questions.

 

B260  Schedule

 

Meeting

Chapter

Topic and Example Problems.  * Indicates material that normally we would distribute, but given the budget problems students are encouraged to make their own copies for class.  ** Indicates material that will be distributed in class.  Links marked PP are PowerPoint summaries of the chapters.  Text versions are in the Chapter column.  Numbered problems are from the book. 

1/25

1,2,3,4

 

Chapter 1,2,3,4 review of probability and statistics.  Chapter 3 (14, 15, 18, 35, 39, 40).  Chapter 4 (12, 20, 21, 29, 30, 34).  Review of Confidence Intervals and Hypothesis Testing.

2/1

Online Class

2/8

5

Decision-Making Concepts (PP),  Wikipedia,   Example problem.  (1,4,15,16,21,22,23,24, C5-1)*.  Decision Tree Primer (PDF) (This is just for review).  Payoff Goal Article    Case 1 distributed** 

2/15

6

Decision Theory and Risk (PP).  (1,2,3,7,11,12,13,15,21)*  Case 2 distributed**.  Risk Management (PDF),  Risk Article (doc)   Black-Scholes Article (PDF).   These three articles are for the exam essay. Hand in case 1.   

2/22

18,  7*

Chapter 18 Simulation    Chapter 7 Forecasting (PP).  (1,3,5,7,12,13,20,21)*  Case 3** and Case 4** distributed.    Hand in case 2.  Discuss written problem assignment one based on decision analysis.  Good day to bring in computer for computer demo.

2/29

 

Forecasting continued.  How to load and use regression in Excel, Interpreting Excel Regression, Another example of interpreting regression    Hand in case 3. Hand in written problem 1.  In-class computer demo.

3/7

7

Review for exam.  Chapter 5 Review Questions Answers to Review Questions.  Answers to textbook problems for chapters:  5,  6,  7.  Answers to Decision Tree Primer Problems from 2/7 (has some extra chapters also).   Another computer demo for excel.  Hand in case 4. 

3/14

 

EXAM 1 (Chapters: 5, 6, 7 and some assigned readings).

3/21

8

Linear Programming (PP).  (2,3,4,5,7,9,10,15,17,18)*    Case 5 distributed ** Chapter 8 Review Problems. 

3/28

Spring Break

4/4

9

Linear programming continued (PP).  (1,2,4,5,7,9,13,14,1518,C9-3)*,    

4/11

9

Linear Programming continued. Chapter 9 Review Problems.   Case 6 distributed**.  Hand in case 5.  Discuss written problem assignment two based on linear programming.

4/18

14

Chapter 14:  Project Management (PP).   (4, 5, 8)* ,  Example Problem       Case 7 distributed**.  Hand in case 6.  Hand in written problem 2.

4/25

17*

Project Proposals due.  Chapter 17:  Waiting Lines (PP)  (2, 8, 9, 10)   Hand in case 7. 

5/2

 

Optional Project Presentations. One essay question on the final exam will be an on-line evaluation of class presentations Review for final.  Sample exam questions. 

5/9

 

Optional Project Presentations. 

5/16

 

Study/conference day.  No class. 

5/23

 

Final Exam.  On Chapters 8, 9, 14, 17.  Exam formally starts at 5:15, but a 6 pm start is ok.  Project due.

 

Requirements: Two exams, seven case studies, two written problems, a paper or project, and participation in evaluation of presentations.

 

Grading

Points

Two exams (100 points each)

200

Seven review case studies (5 each)

  35

Two written problems (10 each)

  20

Paper or project

100

Total

355

 Guidelines for Course Requirements: exams are based on the assigned textbook problems, example problems, cases and some readings that will be posted online.  Be able to write a short answer summary of the readings.  The two written problems are similar to a minor project and can form the basis for the class project.  They should be about the level of detail of a case or review problem from the class, written using hypothetical data, with a solution provided.  Submit hard copy.

 

The paper or project can be a case study based on personal experience, an application related to work, or a standard research paper. It can be done individually or in a group.  A written proposal of a paragraph or two written in memo form is due by 4/25. The final report should describe the problem, the data used, and the results with supporting analysis and graphics. Alternatively, the project can be presented to the class.

 

Expected grade distribution:  95 – 100, A; 90 – 94, A-; 87 – 89, B+; 82 – 86, B; 80 – 81, B-.