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Edexcel IAL·Business·IAL Business

Decision-making, Risk & Decision Trees

13 min read

Scientific vs intuitive decisions, risk and uncertainty, decision trees, and critical path analysis.

How businesses decide

    Scientific decision-making uses data and models (forecasts, appraisal) — objective but slower.
    Intuition uses experience/judgement — fast but subjective.

Most managers blend both. Opportunity cost is the next-best option given up.

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