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Download BUS406 – ANALYSIS FOR BUSINESS DECISIONS (2020)

NATIONAL OPEN UNIVERSITY OF NIGERIA

University Village, Nnamdi Azikiwe Expressway, Plot 91, Cadastral Zone, Jabi, Abuja

Faculty of Agricultural Sciences, Dept. of Agricultural Economics and Extension

PoP Exam Question October/November 2019

2020_1 EXAMINATION

COURSE CODE: BUS 406

COURSE TITLE: ANALYSIS FOR BUSINESS DECISIONS

CREDIT UNITS: 3

INSTRUCTION: 1. Indicate your Matriculation Number clearly

2. Attempt question one (1) and any other three (3) questions – four questions in all

3. Question one (1) is compulsory and carries 25marks, while the other questions carry

15marks each.

4. Present all your points in coherent and orderly Manner

TIME ALLOWED: 3Hrs

QUESTION ONE

(a) State the elements of a typical decision situation in Nigeria.

(b) The matrix below shows the payoffs of an investor who has the choice either investing

in the production of HB pencils, BB Pencils or crayon. The market demand forecast

for any of the product are as depicted in the payoff. Calculate and show which product

should be produced using maximax model.

25marks

QUESTION TWO

(a) The process of analysing decision can be grouped into four phases. List and explain

these four phases. 8 marks

(b)Since decisions are made by human beings, certain errors are bound to happen. The

decision maker need to be aware of them and guide against their occurrence. Please

discuss such possible errors in real life situations. 7 marks

Alternative

products

Market demand

high moderate low

HB Pencil 500 250 -75

BB Pencil 700 300 -60

Crayon 400 200 -50

QUESTION THREE

There are two broad objectives that decision makers can possibly set to achieve in. Explain

them in detail. 15marks

QUESTION FOUR

Chief Adakole is considering where to invest his BetNiaja win. He has received

suggestions from friends to invest in the projects represented in the table below, along

with their relevant probabilities of success given by agric consultants, as, indicated in the

pay-off table below:

Using EMV criterion, advise him as to the best project to embark on.

Decision to

invest

States of nature

good poor turbulent

D1 50 30 15

D2 100 40 10

D3 30 10 -2 P 0.5 0.3 0.2

15marks

QUESTION FIVE

(a) Define Modelling, with special reference to Operations Research. 5 marks

(b) List and discuss the advantages of models. 10 marks.

QUESTION SIX

(a) What is Operations Research? 5 marks

(b) List and discuss the characteristics of Operations Research. 10 marks

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