Supply Chain Management System
There are three types of decisions used during the process of making decisions namely;
- Structured decisions
These decisions are made by companies regularly and are usually straight forward in nature (Black, 2012). They have clear methodology and are meant to look for solutions in order to ensure that the company makes the right decisions. An example of a structured decision is a company deciding whether it will withdraw its funds from a global account depending on the current exchange rate.
- Semi structured decisions
These are decisions between the structured and unstructured decisions and need human judgment and look for the solutions to solve the problems. Example is when a company has to decide whether to merge with another company or not.
- Unstructured decisions
These decisions require facts to solve and mainly rely on knowledge. Example of these decisions is a company deciding on what customers to target and the type of market which should be targeted.
There are three types of business numerical numbers namely;
- Numerical data
Example of numerical data is giving the exact number of employees in the organization (Black, 2012). For instance you can give the number of employees to be 20,000 employees.
- Categorical data
Example of categorical data is classifying they type of employees in the organization whether they are male or female.
- Ordinal data
Example of ordinal data is giving the range of ages of employees in the organization (Black, 2012). For instance employees are aged from 24 to 28 years
Difference between type I and Type II hypothesis errors
There is no single hypothesis that is accurate therefore two types of errors must arise namely;
- Type I error
One makes this type of error when the null hypothesis is true and somebody rejects it (Black, 2012).
- Type II error
one makes this type of error when the null hypothesis is false yet one fails to reject it.
References
Black, K. (2012). Business statistics: For contemporary decision making. Hoboken, NJ: Wiley.
