Decision-Making: Data-Based vs Intuition (AQA A-Level Business): Flashcards
📚Flashcards
Practise the cards
10 cards from this deck
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Practise the cards
10 cards from this deck
Two main approaches to decision-making
Two main approaches to decision-making
Scientific decision-making (data-based) and intuition (gut feeling)
Scientific decision-making definition
Scientific decision-making definition
Systematically gathering info & using logical techniques
Main benefit of scientific decision-making
Main benefit of scientific decision-making
Risk reduction through informed choices
Opportunity cost
Opportunity cost
Value of the next best alternative that must be given up
Intuition in decision-making
Intuition in decision-making
Decisions based on gut feeling, experience, and instinct
When intuition is particularly valuable
When intuition is particularly valuable
For innovative products where data isn't available or reliable
Example of intuition-driven success
Example of intuition-driven success
Sony Walkman - developed despite limited data
Decision trees purpose
Decision trees purpose
Visual diagrams to evaluate decisions with uncertain outcomes
Decision tree symbol: Square represents
Decision tree symbol: Square represents
A decision point
Decision tree symbol: Circle represents
Decision tree symbol: Circle represents
An uncertain outcome or result