Perform Deterministic Analysis and Develop Insights
Eric R. Johnson, Gregory S. Parnell, Steven N. Tani · 2013
This chapter introduces the influence diagram as a tool for planning the model. It discusses the advantages of spreadsheet software as a modeling platform. The chapter provides guidelines for building a spreadsheet decision model. It describes how the reader organizes a spreadsheet model. The chapter also describes debugging a spreadsheet model. It presents techniques for deterministic analysis. The chapter provides a deterministic analysis of Roughneck North American Strategy (RNAS). It also presents a simple example to illustrate multiple objective decision analysis having a monetary value metric. The chapter explains deterministic multiple objective decision analysis with a nonmonetary value metric, using the most common model, the additive model. It talks about deterministic modeling using nonmonetary multidimensional value functions. The chapter illustrates the application of deterministic analysis techniques to the other two examples, Geneptin personalized medicine and the data center location decision. Controlled Vocabulary Terms decision analysis; Deterministic risk analysis; Influence diagram; Monetary policy