rupa mathematics and decision making

Topic: Importance of Mathematics in Decision Making Process 1. Mathematics and Decision Making Decisions shape our lives. Mathematics rationalizes the sifting of information and the balancing of alternatives inherent in any decision. Mathematical models underlie computer programs that support decision making, while bringing order and understanding to the overwhelming flow of data computers produce. Mathematics serves to evaluate and improve the quality of information in the face of uncertainty, to present and clarify options, to model available alternatives and their consequences, and even to control the smaller decisions necessary to reach a larger goal. Paul Davis (1996) Mathematical areas like statistics, optimization, probability, queuing theory, control, game theory, modelling and operations research --- a field devoted entirely to the application of mathematics in decision making --- are essential for making difficult choices in public policy, health, business, manufacturing, finance, law and many other human endeavours. Mathematics is at the heart of a multitude of decisions, including those that generate electric power economically, make a profit in financial markets, approve effective new drugs, weigh legal evidence, fly aircraft safely, manage complex construction projects, and choose new business strategies. Paul Davis (1996) Mathematics shows many faces as it works in these diverse settings. Statistics measures the quality of information. Optimization finds the best alternative. Probability quantifies and manages uncertainty. Control automates decision making. Modelling and computation build the mathematical abstraction of reality upon which these and many other powerful mathematical tools operate. Mathematics is indeed the foundation of modern decision making Paul Davis (1996). Decision making process plays a vital role while appraising the investment. Wrong investment appraisals lead the project to failure. So only the proper use of business mathematics gives the clear view of the investment return and the decision makers can precede the project. In the following case study I am trying to show the use of mathematics in a project while making a decision whether to invest or not.

rupa mathematics and decision making

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