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BUS 640 Week 1 DQ 2 Decision Making .pdf


Original filename: BUS 640 Week 1 DQ 2 Decision Making.pdf
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BUS 640 Week 1 DQ 2 Decision Making Under Uncertainty

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BUS 640 Week 1 DQ 2 Decision Making Under Uncertainty

To save on gasoline expenses, Edith and Mathew agreed to carpool
together for traveling to and from work. Edith preferred to travel on I20 highway as it was usually the fastest, taking 25 minutes in the
absence of traffic delays. Mathew pointed out that traffic jams on the
highway can lead to long delays making the trip 45 minutes. He
preferred to travel along Shea Boulevard, which was longer (35
minutes), but rarely had traffic jams. Edith agreed that in case of
traffic jams, Shea Boulevard was a reasonable alternative. Neither of
them knows the state of the highway ahead of time.

After driving to work on the I-20 highway for 1 month (20 workdays),
they found the highway to be jammed 3 times. Assuming that this
month is a good representation of all months ahead, should Edith and
Mathew continue to use the highway for traveling to work?

How would you conclusion change for the winter months, if bad
weather makes it likely for traffic jams on the highway to increase to
6 days per month?

How would your conclusion change if Mathew purchased a new
smart-phone app that could show the status of the highway traffic
prior to their drive each morning, thus reducing the probability of
them getting into a jam down to only 1 day per month (where on this
day, the app showed no traffic jam, but a jam developed in the
meantime as they were driving along the highway).


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