Maireen Jamie G.

Balibalos
6:00-7:30
11/19/15

BSBA MKTG 3

BA46 TTH

Technical terms
1. Posterior probability. A probability value that results from new or revised
information and prior probability.
2. Uncertainty. Situation in which we can list possible events for a decision,
but cannot given them probabilities.
3. Expected monetary value. The average value of decision if it can be
repeated many times. This is determined by multiplying the monetary values
by their respective probabilities. The results are then added to arrive at the
EMV.
4. Continuous probability distribution. A probability distribution with
continuous random variable.
5. Infeasibility. The condition when there is no solution which satisfies all the
constraints in the problem
6. Normal distribution. A continuous bell-shaped distribution that is a function
of two parameters, the mean and standard deviation of the distribution.
7. Vogel approximation method. Is an iterative procedure for computing a
basic feasible solution of a transportation problem.
8. Alternative optimal solution. A situation in which more than one optimal
solution is possible. It arises when the slope of the objective function is the
same as the slope of a constraint.
9. Discrete probability distribution. A probability distribution with a discrete
random variable.
10.
Degeneracy. A condition that occurs when the number of occupied
squares in any solution is less than the number of rows plus the number of
columns minus 1 in a transportation rule.
11.Probability. A statement about the likelihood of an event occurring. It is
expressed as a numerical value between 0 and 1, inclusive.
12.
Northwest corner method. A systematic procedure for establishing
an initial feasible solution to the transportation problem.
13.
Redundancy. The presence of one or more constraints that do not
affect the feasible solution region.
14.
Maximax. An optimistic decision-making criterion. This selects the
alternative with the highest possible return.
15.
Alternative. A course of action or a strategy that may be chosen by a
decision maker.
16.
State of nature. An outcome or occurrence over which the decision
maker has little or no control.
17.
Simplex method. An efficient method for solving a linear
programming problem before augmentation.
18.
Artificial variable. A computational device used in linear
programming to achieve an artificial solution to the problem
19.
Algorithm. A set of logical and mathematical operations performed in
a specific sequence.

20.
Opportunity loss. The difference between the optimal profit or payoff
for a given state of nature and the actual payoff received for a particular
decision.
21.Obsolesce loss. The profit occasioned by stocking too many units and
having to dispose of unsold units.
22.
Transshipment problem. If the items being transported must go
through an intermediate point (called a transshipment point) before reaching
a final destination.
23.
Random variable. A variable that assigns a number to every possible
outcome of an experiment.
24.
Laplace. The equally likely criterion.
25.
Expected value of perfect information. The average or expected
value of information if it were completely accurate. The increase in EMV that
results from having perfect information.
26.
Linear programming. A technique that helps in resource allocation
decisions.
27.
Stepping stone method. An iterative technique for moving from an
initial feasible solution to an optimal solution in transportation problem.
28.
Hungarian method. A matrix reduction approach to solving the
assignment problem.
29.
Marginal probability. The simple probability of an event occurring.
30.
Outcome. something that happens as a result of an activity or process
31.
Hurwicz. The criterion of realism.
32.
Dependent events. The situation in which the occurrence of one
event affects the probability of occurrence of some other event.
33.
Decision trees. A graphical representation of a decision making
situation.
34.Bayes theorem. A formula that is used to revise probabilities based on new
information
35.
Sensitivity analysis. Determines hoe the solutions will change with a
different model or input data.
36.
Certainty. The decision environment in which only one state of nature
exist
37.
Slack variable. A variable used in linear programming to convert an
inequality of an equation.
38.
Risk. The possibility that something bad or unpleasant will happen.
39.
Unboundedness. A condition that exists when a solution variable and
the profit can be made infinitely large without violating any of the problems
constraints in a maximization process.
40.
Modi method. A computationally efficient procedure for solving the
transportation problem.
41.
Joint probability. The probability of events occurring together (or one
after the other).
42.
Problem. A statement, which should come from a manager that
indicates a problem to be solved or an objective or a goal to be reached.
43.
Model. A representation of reality or a real-life situation.
44.
Surplus value. A slack variable in a greater-than-or-equal to constant
45.
Physical model. Are the ones that look like the finished object they represent.

46.
Scale model. A representation or copy of an object that is larger or
smaller than the actual size of the object being represented.
47.
Schematic model. Is a picture, drawing or chart of reality.
48.
Mathematical model. A model that uses mathematical equations
and statements to represents the relationship within the model
49.
Stochastic model. Another name for a probabilistic model. A model
in which all values used in the model are not known with certainty but rather
involve some chance or risk, often measured as a probability value.
50.Data. Raw facts that are processed to give information

Resources:
BOOKS
Render, B., Stair, R., Hanna, M. (2012) Quantitative Analysis for Management
11th edition. Singapore: Pearson Educational Inc.
Waters, D. (2008) Quantitative methods for business 4 th edition. England:
Pearson Educational Limited
Levin, R., Rubin, D., Stinson, J. (1965) Quantitative Approaches to
Management. Singapore: McGraw Hill book Inc.
WEBSITES
MODELS AND MODELING. (2015 Advameg, Inc.). Retrieved from
http://www.referenceforbusiness.com/management/Mar-No/Models-andModeling.html#ixzz3rr2yEv1m
Vogel Approximation Method. (universalteacherpublisherpublication.com).
Retrieved from
http://www.universalteacherpublications.com/univ/ebooks/or/Ch5/vogel.htm
ScienceDaily,. (2015). Scale model. Retrieved 18 November 2015, from
http://www.sciencedaily.com/terms/scale_model.htm

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USC Librarian