Discuss the different roles played by the qualitative and quantitative approaches to managerial decision making. Why is it impor
tant for a manager or decision maker to have a good understanding of both of these approaches to decision making? Give an example of when the qualitative approach might be more appropriate and another example of when the quantitative approach might be more appropriate.
Regarding the management decision-making process, there are two different approaches that the manager must know and know how to use in certain situations.
The qualitative approach is one that is based on experimental knowledge of various factors involved in decision making, such as interpersonal connections that occur in the work environment, in this approach it is necessary that the manager has an intuition and accurate perception of the organization as a whole before making an important decision
The quantitative approach is one that uses mathematical statistics for decision making, generally works best for solving measurable problems, and for this reason can be used by a manager without much direct experience.
The qualitative approach may be more appropriate in a situation where a manager needs to solve problems related to situations of conflict between organizational departments, because in this scenario it is necessary to have knowledge of factors that generate the complex interaction between people.
The quantitative approach can be more useful in a scenario where it needs to analyze which are the most profitable departments in the organization and what is the probability of each department generating profits in the company, because in this case accounting data are used to support decision making.
d. Matt's statement is positive while Jean's statement is normative
Explanation:
A positive statement can be defined as any statement that is typically based on empirical evidence and as such can be tested, proven and verified. Also, a positive statement can be amended or rejected based on evidences that are available.
On the other hand, a normative statement can be defined as any statement that can't be tested, proven or verified because it is judgmental and based on opinions.
In this scenario, Matt observes that "there is a high correlation between educational attainment and the level of income." Jean concurs and adds that "high school graduates should all proceed to college"
Hence, Matt's statement is positive because it is an observation based on empirical evidence while Jean's statement is normative because it's simply his opinion or a value judgment.
Accountancy There are 6 points on a coordinate plane. The points are (negative 5, 0), (negative 4, 1), (negative 3, 4), (1, negative 2), (2, 4), (5, negative 3).