Decision making techniques

Worked examples (6)

• 1Calculate a 3-year moving average
• 2Calculate seasonal variation
• 3Calculate a 4-quarter moving average
• 4Interpret correlation from a scatter graph
• 5Extrapolate to forecast sales
• 6Analyse forecast reliability by market

Model answers (6)

• ✓Model answer — WBS13 style — Define (2 marks, Knowledge 2)
• ✓Model answer — WBS13 style — Calculate (4 marks: Knowledge 1, Application 2, Analysis 1)
• ✓Model answer — WBS13 style — Analyse (6 marks: Knowledge 2, Application 2, Analysis 2)
• ✓Model answer — WBS13 style — Discuss (8 marks, 3-Level grid; Level 3 = 6–8)
• ✓Model answer — WBS13 style — Assess (10 marks, 4-Level grid; Level 4 = 8–10)
• ✓Model answer — WBS13 style — Evaluate (20 marks, 4-Level grid; Level 4 = 16–20)

Worked examples (6)

• 1Calculate the payback period
• 2Calculate the average rate of return (ARR)
• 3Calculate net present value (NPV)
• 4Compare two projects by payback
• 5Analyse why NPV is the most complete method
• 6Analyse the limits of investment appraisal

Model answers (6)

• ✓Model answer — WBS13 style — Define (2 marks, Knowledge 2)
• ✓Model answer — WBS13 style — Calculate (4 marks: Knowledge 1, Application 2, Analysis 1)
• ✓Model answer — WBS13 style — Analyse (6 marks: Knowledge 2, Application 2, Analysis 2)
• ✓Model answer — WBS13 style — Discuss (8 marks, 3-Level grid; Level 3 = 6–8)
• ✓Model answer — WBS13 style — Assess (10 marks, 4-Level grid; Level 4 = 8–10)
• ✓Model answer — WBS13 style — Evaluate (20 marks, 4-Level grid; Level 4 = 16–20)

Worked examples (6)

• 1Calculate an expected value
• 2Calculate the net gain
• 3Roll back to choose between options
• 4Calculate EV with three outcomes
• 5Analyse the limits of a decision tree
• 6Analyse the benefits of a decision tree

Model answers (6)

• ✓Model answer — WBS13 style — Define (2 marks, Knowledge 2)
• ✓Model answer — WBS13 style — Calculate (4 marks: Knowledge 1, Application 2, Analysis 1)
• ✓Model answer — WBS13 style — Analyse (6 marks: Knowledge 2, Application 2, Analysis 2)
• ✓Model answer — WBS13 style — Discuss (8 marks, 3-Level grid; Level 3 = 6–8)
• ✓Model answer — WBS13 style — Assess (10 marks, 4-Level grid; Level 4 = 8–10)
• ✓Model answer — WBS13 style — Evaluate (20 marks, 4-Level grid; Level 4 = 16–20)

Worked examples (6)

• 1Calculate an earliest start time (EST)
• 2Calculate a latest finish time (LFT)
• 3Calculate the float of an activity
• 4Identify the critical path and duration
• 5Analyse the benefits of CPA
• 6Analyse the limitations of CPA

Model answers (6)

• ✓Model answer — WBS13 style — Define (2 marks, Knowledge 2)
• ✓Model answer — WBS13 style — Calculate (4 marks: Knowledge 1, Application 2, Analysis 1)
• ✓Model answer — WBS13 style — Analyse (6 marks: Knowledge 2, Application 2, Analysis 2)
• ✓Model answer — WBS13 style — Discuss (8 marks, 3-Level grid; Level 3 = 6–8)
• ✓Model answer — WBS13 style — Assess (10 marks, 4-Level grid; Level 4 = 8–10)
• ✓Model answer — WBS13 style — Evaluate (20 marks, 4-Level grid; Level 4 = 16–20)

Worked examples (6)

• 1Calculate contribution per unit
• 2Calculate profit using contribution
• 3Evaluate a special order using contribution
• 4Prioritise by contribution per limiting factor
• 5Analyse a make-or-buy decision
• 6Analyse the short-run/long-run limit of contribution

Model answers (6)

• ✓Model answer — WBS13 style — Define (2 marks, Knowledge 2)
• ✓Model answer — WBS13 style — Calculate (4 marks: Knowledge 1, Application 2, Analysis 1)
• ✓Model answer — WBS13 style — Analyse (6 marks: Knowledge 2, Application 2, Analysis 2)
• ✓Model answer — WBS13 style — Discuss (8 marks, 3-Level grid; Level 3 = 6–8)
• ✓Model answer — WBS13 style — Assess (10 marks, 4-Level grid; Level 4 = 8–10)
• ✓Model answer — WBS13 style — Evaluate (20 marks, 4-Level grid; Level 4 = 16–20)