Week 8 - Technology decision

Decision making?

Resource allocation

We need tangible techniques to allocate resources ( a science called linear programming)

Allocate weightings

http://www.un.org/climatechange/blog/2014/04/07/renewable-energy-market-share-climbs-despite-2013-dip-in-investments/

7 April 2014 – Government representatives and scientists opened a five-day meeting on Monday of the Intergovernmental Panel on Climate Change (IPCC) to finalize a report assessing the options for mitigating climate change, and the underlying technical, economic and institutional requirements.

http://www.un.org/climatechange/blog/2014/04/07/ipcc-starts-meeting-to-finalize-working-group-iii-report/

They campaign to create global awareness of disaster risk reduction benefits and empower people to reduce their vulnerability to hazards. Our current campaigns focus on safer schools and hospitals as well as resilient cities.

http://www.unisdr.org/we/campaign

Decision trees & Decision matrices

Here are some conventional trees matrices for decision making.

Decision tree

Linear programming

relating to some situation, the process of taking various linear inequalities, and finding the "best" value obtainable under those conditions is Linear programming. For example determining the "best" production levels for maximal profits of the limitations of materials and labor.

linear programming is an vital element of mathematics known as "optimization techniques".

In resolving the organization and allocation of resources, this study is used every day.

Dozens or hundreds of variables are used in the "real life" systems, although in algebra variables only the simple and graphable two variable linear case will work within.

Graphing the inequalities known as the "constraints" is the general process for solving linear programming exercises. This process is completed to form a enclosed off area on the x,y plane known as the "feasibility region". Subsequently the coordinates are allocated of the corners of this feasibility region and the corner points are tested using the formula called the "optimization equation" which is done to record the highest or lowest value.

Financial decision making

Sensitivity analysis

The main goal of sensitivity analysis is to gain insight into which assumptions are critical for example which assumptions affect choice. Changing input values of the model is the process involving various ways to see the effect on the output value. A single model can be used as a decision to investigate several alternatives. Spreadsheet model may be used In other cases as an alternative.

References:

Stapel, E. 2014. Linear Programming: Introduction. [online] Available at: http://www.purplemath.com/modules/linprog.htm [Accessed: 13 Apr 2014].

Anonymous. 2014. [online] Available at: http://www.treeplan.com/chapters/sensitivity-analysis-using-excel.pdf [Accessed: 14 Apr 2014].