CMP 709 PRACTISING QUUESTIONS.

Enumerate three (3) major source of data with at list two (2) explain qualitative approach
to decision making?

Three major sources of data are:

1. Surveys and Questionnaires: Surveys and questionnaires are a common source of data,
particularly when collecting information from a large number of individuals or
organizations. Qualitative data can be gathered through open-ended questions that allow
respondents to provide detailed, subjective responses, which can then be analyzed to
identify patterns and themes.
2. Interviews: Interviews involve direct conversations between researchers and participants.
In qualitative research, semi-structured or unstructured interviews are often used to
explore the perspectives, experiences, and opinions of individuals. The rich, narrative
data obtained from interviews can provide deep insights into a topic.
3. Observations: Observational data is collected by systematically watching and recording
events, behaviors, or phenomena in their natural context. Qualitative research often
involves participant observation, where researchers immerse themselves in the setting
they are studying. This approach helps researchers gain a holistic understanding of the
subject matter.

Qualitative approaches to decision making involve using subjective, non-numerical information

to inform and guide the decision-making process. Here are two qualitative approaches to
decision making:

1. Narrative Analysis: In this approach, decision makers collect and analyze stories,
anecdotes, and narratives to gain insights into a problem or situation. By examining the
stories people tell about their experiences, decision makers can identify recurring themes,
underlying beliefs, and the emotional dimensions of the issue. Narrative analysis can be
particularly useful when dealing with complex, multifaceted problems.
2. Case Studies: Case studies involve an in-depth examination of a specific instance or
example. Decision makers gather detailed qualitative data about a single case or a small
number of cases to understand the context, processes, and outcomes associated with a
particular decision or situation. Case studies provide rich, contextualized information that
can help inform decision making.

These qualitative approaches emphasize the importance of context, meaning, and individual
perspectives in decision making. They are especially valuable when dealing with complex,
ambiguous, or novel situations where quantitative data alone may not provide a complete
understanding of the issues at hand.

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Layout three (3) techniques of qualitative approach in making decision and explain one?

Here are three techniques of qualitative approaches in making decisions, along with an
explanation of one of them:

1. Content Analysis:
o Explanation: Content analysis is a technique used to systematically analyze and
interpret the content of textual, visual, or audio data. It involves coding and
categorizing qualitative data to identify patterns, themes, and trends. Decision
makers can apply content analysis to various types of data, such as documents,
social media posts, or transcripts of interviews. By examining the content,
decision makers can gain insights into public opinions, sentiment, or trends
related to a particular issue. For example, if a company is considering launching a
new product, they may conduct content analysis of customer reviews and social
media discussions to understand how potential customers perceive similar
products in the market.
2. Grounded Theory:
o Explanation: Grounded theory is a research method that aims to develop theories
or concepts based on empirical data. In decision making, grounded theory can be
used to generate new insights and theories about a specific problem or
phenomenon. Researchers collect qualitative data through interviews,
observations, or documents and then systematically analyze and code the data to
identify patterns and concepts that emerge from the data itself, rather than starting
with preconceived theories. This technique is valuable when decision makers
want to explore and understand complex, unexplored topics, allowing them to
develop a deeper understanding of the issues at hand.
3. Delphi Method:
o Explanation: The Delphi method is a structured communication technique used
to gather input from a panel of experts or stakeholders. Decision makers select a
group of individuals with expertise in the relevant field or topic and engage them
in a series of iterative surveys or questionnaires. In each round, participants
provide their opinions and insights on a particular issue, and the responses are
compiled and redistributed to the group for further consideration. The process
continues until a consensus or convergence of opinions is reached. The Delphi
method is particularly useful when making decisions that require expert judgment
or when there is uncertainty about a specific issue. It helps decision makers tap
into the collective wisdom of experts and stakeholders to inform their decisions.

These qualitative techniques offer valuable tools for making informed decisions by exploring,
analyzing, and interpreting qualitative data. Depending on the nature of the decision and the
available data, decision makers can choose the most suitable qualitative approach to gain deeper
insights and inform their choices.

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Explain decision analysis and enumerate three (3) vital component of a decision?

Decision Analysis is a systematic and structured approach to making choices among various
alternatives or courses of action in situations where uncertainty, multiple criteria, and trade-offs
exist. It provides a framework for evaluating options and selecting the one that best aligns with
an individual's or organization's goals and objectives. Decision analysis involves the use of
mathematical, statistical, and logical techniques to improve the quality of decision-making.
Here's a brief explanation of decision analysis and three vital components of a decision:

Three Vital Components of a Decision:

1. Decision Alternatives: Decision alternatives are the various options or choices available
to the decision maker. These alternatives represent the different courses of action that can
be taken to address a specific problem or achieve a goal. In decision analysis, it's
essential to identify and define these alternatives comprehensively. The quality and
feasibility of the alternatives greatly influence the final decision.
2. Criteria and Objectives: Criteria are the standards or factors used to evaluate and
compare the decision alternatives. They represent the dimensions or attributes that are
important to the decision maker in assessing the desirability of each alternative.
Objectives are the specific goals or outcomes that the decision maker aims to achieve.
Criteria and objectives help quantify and prioritize the different aspects that matter in the
decision-making process. They provide a basis for making trade-offs between competing
alternatives.
3. Uncertainty and Probabilities: Uncertainty is an inherent part of decision-making, as
we often don't have complete information about the future or the outcomes associated
with each alternative. Decision analysis acknowledges uncertainty by incorporating
probabilities or likelihoods of different outcomes. This component involves estimating
the probabilities of various scenarios or events and their potential impact on the decision.
Techniques like probability distributions and sensitivity analysis are used to handle
uncertainty in decision analysis.

In summary, decision analysis is a structured approach to making decisions that involves

identifying decision alternatives, defining criteria and objectives, and addressing uncertainty
through probability assessments. By systematically considering these vital components, decision
makers can make more informed choices that are aligned with their goals and preferences.
Additionally, decision analysis often employs tools like decision trees, cost-benefit analysis, and
multi-criteria decision analysis to facilitate the decision-making process.

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Using the Maxima criterion, consider contingency table 1 on the next page and make an
appropriate recommendation to an investor?

I'm sorry for any confusion, but it appears that you mentioned a "contingency table 1 on the next
page," but I don't have access to specific pages or external content. However, I can explain the
Maxima criterion and provide guidance on how to use it to make a recommendation in a
decision-making context.

The Maxima criterion is a decision-making approach that involves selecting the alternative with
the maximum (or highest) possible payoff under each state of nature. This criterion is commonly
used in decision analysis when dealing with decision problems under uncertainty. Here's how
you can apply the Maxima criterion:

1. Identify Alternatives: List down the various decision alternatives that are available to
the investor. These alternatives could represent different investment options, projects, or
strategies.
2. Identify States of Nature: Determine the different possible states of nature or scenarios
that could affect the outcomes of the decision. These states of nature represent different
future events or conditions that are beyond the investor's control. For example, states of
nature could include economic conditions (e.g., recession, growth), market conditions
(e.g., bullish, bearish), or other relevant factors.
3. Payoff Table: Create a payoff table that shows the potential outcomes (payoffs or
returns) for each combination of alternative and state of nature. The table should display
the expected payoffs associated with each alternative under each possible state of nature.
4. Apply the Maxima Criterion: For each state of nature, identify the alternative with the
maximum payoff. In other words, determine which alternative yields the highest expected
return or payoff under each scenario.
5. Recommendation: Based on the Maxima criterion, recommend the alternative that
maximizes the expected payoff or return across all possible states of nature. This is the
alternative that offers the best overall expected outcome given the available information
and uncertainty.

It's important to note that the Maxima criterion assumes that decision makers are risk-neutral,
meaning they are solely focused on maximizing expected returns without considering their risk
tolerance. If the investor has a preference for risk and is willing to consider factors like risk
aversion, they may need to use a different decision criterion, such as the Maximin criterion
(which focuses on minimizing the maximum possible loss) or the Expected Monetary Value
(EMV) criterion (which considers both expected returns and risk).

If you have a specific contingency table or data in mind that you'd like me to analyze using the
Maxima criterion, please provide the relevant data, and I can assist you with making a
recommendation based on that information.

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Explain the following types of data mined (a) Flat file (b) Related database (c) Data
warehouse?

Data mining is the process of extracting useful patterns, information, and knowledge from large
datasets. The type of data source used for data mining can significantly impact the mining
process and the insights derived from it. Here, I'll explain the following types of data sources that
are commonly used in data mining:

(a) Flat File:

 Explanation: A flat file is a type of data storage where data is stored in a plain, text-
based file with a specific structure, typically in a tabular form with rows and columns.
Each line in the file represents a record, and each field or column holds a specific
attribute or piece of information. Flat files can be in formats like CSV (Comma-Separated
Values), TSV (Tab-Separated Values), or fixed-width text files. Flat files are simple to
create and manage, making them a common way to store data.
 Use in Data Mining: Flat files are often used as a data source for data mining, especially
for small to moderately sized datasets. Data mining tools can import flat files to analyze
the data for patterns, trends, associations, and anomalies. The structure of flat files makes
it relatively easy to work with in various data mining algorithms.

(b) Related Database:

 Explanation: A related database, in the context of data mining, typically refers to a

relational database management system (RDBMS). In an RDBMS, data is organized into
structured tables with predefined relationships between them. These databases are used to
store, manage, and retrieve structured data efficiently. Data in an RDBMS is organized
into tables, with each table representing an entity, and relationships between tables are
established through keys (e.g., primary keys and foreign keys).
 Use in Data Mining: Related databases are a common source of data for data mining,
especially for organizations that store their data in structured, relational databases. Data
mining tools can connect to the database and perform queries to extract the necessary
data for analysis. SQL (Structured Query Language) is often used to retrieve data from
relational databases for data mining purposes. The structured nature of the data in a
related database can facilitate complex queries and joins to uncover insights.

(c) Data Warehouse:

 Explanation: A data warehouse is a centralized repository that stores large volumes of

historical and structured data from various sources within an organization. Data
warehouses are designed for efficient querying and reporting. They typically integrate
data from different operational systems and transform it into a format suitable for
analysis. Data warehouses are often used to consolidate, clean, and organize data for
business intelligence, reporting, and data mining purposes.

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  Use in Data Mining: Data warehouses are a valuable source for data mining because
they provide a unified view of an organization's data. Data mining algorithms can be
applied to data stored in a data warehouse to discover patterns, trends, and insights that
can inform business decisions. The structured and historical nature of data in a data
warehouse allows for in-depth analysis, trend identification, and the generation of
business intelligence.

In summary, flat files, related databases (typically RDBMS), and data warehouses are common
data sources used in data mining. The choice of data source depends on factors such as the size
of the dataset, data structure, and the specific goals of the data mining project.

Explain Data Characterization?

Data characterization, in the context of data analysis and data mining, is the process of
summarizing and describing the main characteristics, properties, and features of a dataset. This
process involves examining the dataset to gain a comprehensive understanding of its content,
structure, and patterns. Data characterization is typically one of the initial steps in the data
analysis process and serves several important purposes:

1. Data Exploration: Data characterization helps data analysts or scientists become familiar
with the dataset. By exploring the data, they can identify potential trends, outliers, and
anomalies. This exploration is essential for formulating hypotheses and research
questions.
2. Data Quality Assessment: Characterization allows analysts to assess the quality and
integrity of the dataset. They can check for missing values, data inconsistencies, and
errors that may need to be addressed before further analysis.
3. Feature Selection: Understanding the dataset's characteristics helps in selecting relevant
features (variables or attributes) for analysis. Not all features in a dataset may be equally
important, and characterization can guide the selection of those that are most meaningful
for the intended analysis.
4. Statistical Summary: Data characterization involves calculating basic statistical
measures such as mean, median, mode, standard deviation, and range for numerical
variables. For categorical variables, it may involve counting the frequency of different
categories. These statistics provide a snapshot of the central tendencies and variability in
the data.
5. Visualization: Data characterization often includes creating visualizations such as
histograms, box plots, scatter plots, and bar charts to represent the data graphically.
Visualizations help in understanding data distributions and relationships among variables.
6. Identifying Data Patterns: Analysts use data characterization to identify patterns,
associations, and correlations within the dataset. For example, they may observe that
certain variables tend to co-occur or that specific values are more common under certain
conditions.
7. Data Preprocessing: Based on the insights gained from data characterization, analysts
can make decisions about data preprocessing steps. For instance, they may decide to

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 handle missing data, standardize variables, or normalize the data based on their
observations.
8. Hypothesis Generation: The patterns and trends uncovered during data characterization
can lead to the formulation of hypotheses that can be tested later in the data analysis
process.

In summary, data characterization is a crucial step in data analysis and data mining that involves
exploring, summarizing, and understanding the key properties and attributes of a dataset. It
serves as a foundation for subsequent analysis and decision-making steps, helping analysts make
informed choices about data preprocessing, feature selection, and modeling techniques.

Explain Qualitative approach to decision making?

A qualitative approach to decision making is a method that relies on subjective judgment, expert
opinions, and non-quantitative information to inform and guide the decision-making process.
Unlike quantitative approaches, which emphasize numerical data and statistical analysis,
qualitative decision making focuses on understanding the context, gathering insights from human
experiences, and considering factors that may be difficult to quantify. Here are key components
and characteristics of a qualitative approach to decision making:

1. Subjective Judgment: Qualitative decision making acknowledges that some decisions

cannot be solely based on objective, quantitative data. It recognizes the importance of
subjective judgment and intuition in situations where data is limited or uncertain.
Decision makers may rely on their experience, intuition, and personal insights to make
choices.
2. Contextual Understanding: Qualitative decision making places a strong emphasis on
understanding the context in which the decision is being made. This includes considering
the historical, cultural, social, and environmental factors that may influence the decision.
Decision makers seek to grasp the nuances and complexities of the situation.
3. Open-Ended Information: Qualitative approaches often involve collecting open-ended
information, such as narratives, stories, and descriptions, to gain a deeper understanding
of the problem or issue. This information may come from sources like interviews, focus
groups, case studies, or expert opinions.
4. Rich Description: Decision makers aim to develop rich, descriptive accounts of the
decision problem. They may use techniques like storytelling or narrative analysis to
create a detailed picture of the situation, including the various stakeholders involved and
their perspectives.
5. Exploration of Alternatives: Qualitative decision making explores a range of potential
alternatives or solutions, considering not only the immediate outcomes but also the long-
term consequences and ethical implications of each option.
6. Emphasis on Values and Ethics: Ethical considerations and values play a significant
role in qualitative decision making. Decision makers reflect on their own values and
consider the ethical implications of their choices. This is particularly relevant in complex
and morally sensitive decisions.

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 7. Qualitative Research Methods: Qualitative decision making often leverages qualitative
research methods, such as interviews, surveys, content analysis, and participant
observation, to gather information and insights. These methods allow decision makers to
capture the depth and diversity of human perspectives.
8. Holistic Understanding: Decision makers seek to gain a holistic understanding of the
problem or decision by considering a wide range of factors, including emotional, cultural,
and social aspects. This comprehensive view can lead to more inclusive and culturally
sensitive decisions.
9. Flexibility and Adaptability: Qualitative approaches are flexible and adaptable to
changing circumstances. Decision makers may adjust their strategies and choices based
on new information, emerging trends, or shifting priorities.
10. Risk Assessment: Qualitative decision making involves assessing and managing risks,
particularly those that may not be easily quantifiable. Decision makers consider potential
adverse outcomes and uncertainties in their deliberations.

Overall, a qualitative approach to decision making is valuable when dealing with complex,
ambiguous, or deeply contextual problems where quantitative data alone may not provide a
complete understanding. It complements quantitative approaches by bringing a more human-
centered and holistic perspective to the decision-making process.

Write at length on decision screening criterion?

Decision screening criteria, also known as decision criteria or decision filters, are a
fundamental component of the decision-making process in both personal and organizational
contexts. They serve as the benchmarks or standards against which various alternatives or
options are evaluated to determine their suitability for a particular decision. Decision screening
criteria help decision makers prioritize and select the best course of action by considering
relevant factors and objectives. Here, we'll explore decision screening criteria in detail:

Key Elements of Decision Screening Criteria:

1. Objectives and Goals: Decision screening criteria are derived from the specific
objectives and goals of the decision. These objectives outline what the decision seeks to
achieve. By aligning criteria with objectives, decision makers ensure that their choices
are in line with the desired outcomes.
2. Relevance: Criteria should be relevant to the decision at hand. Irrelevant criteria can
cloud judgment and make the decision-making process less effective. Criteria should
directly address the key aspects of the decision problem.
3. Quantifiability: Some criteria are quantitative in nature and can be measured precisely,
such as cost, revenue, or time. Others are qualitative, involving subjective judgments and
descriptions. Decision makers should be clear about whether criteria are quantitative or
qualitative.

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 4. Weighting: In complex decisions, not all criteria may carry the same level of importance.
Decision makers often assign weights to criteria to reflect their relative importance.
Criteria with higher weights have a more significant impact on the final decision.
5. Trade-offs: Decision screening criteria often involve trade-offs. For example, in project
selection, criteria like cost and project duration may be inversely related - reducing one
might increase the other. Decision makers need to consider these trade-offs when
evaluating alternatives.
6. Thresholds: Some criteria have minimum or maximum threshold values that must be met
for an alternative to be considered viable. If an alternative falls below these thresholds, it
may be automatically eliminated from consideration.

Steps in Using Decision Screening Criteria:

1. Identification of Criteria: The first step is to identify and define the decision screening
criteria. This is often done by analyzing the objectives and requirements of the decision.
Criteria should be comprehensive and cover all essential aspects.
2. Quantification (if applicable): If criteria can be quantified, decision makers may assign
specific numerical values or scales to them. This facilitates a more objective evaluation of
alternatives.
3. Weighting (if applicable): When criteria have different levels of importance, decision
makers assign weights to each criterion. Weights are typically expressed as percentages
or proportions and must sum up to 100%.
4. Alternative Evaluation: Decision makers evaluate each alternative or option against the
established criteria. This involves gathering data, conducting analyses, and making
judgments to determine how well each alternative meets the criteria.
5. Scoring and Ranking: Decision makers may use scoring systems to assess each
alternative's performance against the criteria. Alternatives are ranked or scored based on
how well they satisfy the criteria.
6. Decision Selection: After evaluating alternatives, decision makers select the alternative
that performs best according to the established criteria. The choice should align with the
objectives and goals of the decision.

Examples of Decision Screening Criteria:

1. Cost: A common criterion for many decisions, especially in business and project
management. It includes factors such as initial costs, operating costs, and long-term costs.
2. Quality: Criteria related to the quality of products, services, or outcomes. This could
involve reliability, durability, or customer satisfaction.
3. Time: Time-related criteria could include project completion time, delivery time, or
response time.
4. Risk: The level of risk associated with each alternative, including factors like financial
risk, safety, or compliance risk.
5. Environmental Impact: Criteria that assess the environmental consequences of a
decision, such as carbon emissions, pollution, or resource consumption.
6. Market Potential: In business decisions, criteria may involve market size, growth
potential, or competition.

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Challenges and Considerations:

 Subjectivity: Some criteria are inherently subjective, and different decision makers may
assign different values or weights to them. This subjectivity can lead to varying
decisions.
 Changing Objectives: In dynamic environments, objectives and criteria may evolve over
time. Decision makers should be adaptable and open to revisiting criteria as needed.
 Information Availability: The quality and availability of data can impact the
effectiveness of decision screening criteria. Incomplete or inaccurate information can
lead to suboptimal decisions.
 Complexity: In complex decisions, managing and evaluating multiple criteria can be
challenging. Decision support tools and software can help streamline the process.

In conclusion, decision screening criteria are a vital tool for making informed and objective
decisions. They provide a structured framework for evaluating alternatives based on established
objectives and criteria. Careful consideration and customization of these criteria are essential to
ensure that the decision-making process aligns with the desired outcomes.

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