NATIONAL OPEN UNIVERSITY OF NIGERIA

UNIVERSITY VILLAGE, PLOT 91, CASDASTRAL ZONE, NNAMDI AZIKIWE EXPRESS WAY, JABI, ABUJA.
FACULTY OF MANAGEMENT SCIENCES
APRIL/MAY 2019 EXAMINATION

COURSE CODE: BUS406                                                                        

CREDIT UNIT: 3              

COURSE TITLE: ANALYSIS FOR BUSINESS DECISIONS

TIME ALLOWED: 21/2HRS

INSTRUCTIONS:

1. Attempt Question One (1) and any other three (3) questions

2. Question 1 carries 25 marks, while the other questions carry 15 marks each.

3. Present all points in coherent and orderly manner

1a. What is a decision?   (15 marks)

  b. Who is a decision maker?     (10 marks)

2a. What is a state of nature, and how does it affect decisions? (10 marks)

b. As the transport consultant to NOUN Limited, explain the difference between the result obtained from the least cost method and from north-west corner method.   (5 marks)      

3. Contrast a deterministic analysis from probabilistic analysis   (15 marks)

4a. Discuss possible errors that can arise in decision making exercise.   (10 marks)

   b. Advise decision makers on how to minimize these errors.    (5 marks)

5. There are four (4) phases of decision analysis that flow in order of succession. Discuss the first three (3) of them.    (15 marks)

6a. Draw the network having the following activity units.             (15 marks)                                                   

Activity Predecessor       Completion time (weeks)  Activity Predecessor       Completion time (weeks)

A            None                                 I             C            3

B            A            2                           J             D            6

C            A            4                           K            G            3

D            A            3                           K            H            3

E            B            2                           L             I             7

F            B            1                           L             J             9

G            E            2                           L             K            4

H            F            1                                                      

b. Determine the latest completion time.                           (10 marks)