Managerial Decision Making: Course Work

Managerial Decision Making: Course Work Name: Course title: Professor: Institution: Date Due:  Question 1 Preference reversal refers to the situation where preferences for bundles are altered in the case when options are juxtaposed. In a situation when the bundles are separately valued, the decisions made concerning such a bundle will not be the same as when the bundle was jointly valued. This arises due to the relativity of the choices. Most decisions and judgments are made in one or combination of two main assessment modes. These include joint assessment mode, and separate assessment modes. Joint assessment mode occurs when various options are simultaneously presented and comparatively evaluated. On the other hand, separate assessment mode occurs when the options presented are in isolation and separated evaluated. In joint evaluation, the end user could make his or her decisions on the basis of comparison to various other options. This may ultimately lead to better decisions and less error being made by the end user. Separate evaluation on the other hand draws upon the consumer references and can be influenced by uncertainty. Therefore, it can lead to consumer error being made (Bazerman, Moore, 2009). The common element between separate and joint reversal is that they both refer to how various people tend to manage their emotions. Joint preference reversal is the making of decisions on different issues at the same time. In this type of evaluation, an individual could make and evaluate decisions simultaneously. This is unlike separate preference reversal where decisions are made one at a time. Joint reversal happens to be a better type of decision-making strategy since one can get enough time to analyze a particular element before real action.  Question 2 Expected value refers to the basic principle of analyzing decisions. This concept is the foundation of most decision analysis. The Rule is as follows; Expected Value= Probability- weighted Avarage of all possible outcomes of a chance event. This can also be presented in notations as in, E(x), EV, EMV, m EMV = expected monetary value in case when the context is on monetary value. This is calculated as EMV = EV net present value. The decision rule for EMV is that if the objective is to increase an organizational EMV, then the best possible decision requirement is to select the option of having the highest EMV. (Bazerman, Moore, 2009). Recently, I came across a 50-50 raffle somewhere in New York where I applied the expected value rule in making the decision not to participate. The 50-50 raffle is a kind of charity in America that supports schools, organizations and so on. The group collects funds by selling tickets for $1 each. Each of these tickets has a unique identification and a duplicate, which is kept by the organization so that it can be placed in the drawing. When all these tickets are finished, a si...