Which one of the following is a quantitative technique of decision making ?

Question

Accepted Answer

The correct option is 2:
Decision Tree is considered a quantitative technique of decision-making because it systematically integrates expected values, probabilities, and costs into a model to determine the mathematically optimal course of action. This technique is a visual and analytical tool that maps out a sequence of decisions (represented by squares) and uncertain events (represented by circles), with each possible outcome assigned a financial payoff or utility. By calculating the Expected Monetary Value (EMV) at each chance node using assigned probabilities and then employing a "rollback analysis," managers can compare the projected return of various strategies and select the one that maximizes their expected payoff. Its reliance on numerical input, probability theory, and calculation makes it a core quantitative method used in operations research and financial analysis.

The incorrect option is 1:
Brain Storming is a purely creative and qualitative technique focused on idea generation. Its fundamental purpose is to produce a high quantity of ideas in a short time by encouraging free-flowing thought and suspending all criticism. It is a divergent thinking tool that relies on human creativity and group interaction, not on mathematical formulas, cost analysis, or the calculation of probabilities. While a Brain Storming session may precede a quantitative analysis, the technique itself is classified as subjective and qualitative.

The incorrect option is 3:
The Delphi Technique is a qualitative forecasting and consensus-building method. It involves gathering structured feedback from a panel of experts, usually through multiple rounds of questionnaires, to arrive at a reliable group judgment. The process is designed to consolidate subjective, expert opinions anonymously to avoid the biasing effects of face-to-face meetings. Although the final output is a number (a forecast), the technique's method relies entirely on subjective judgment, iteration, and communication to refine qualitative estimates, not on a mathematical model for decision optimization.

The incorrect option is 4:
Consensus Mapping is a qualitative group process tool aimed at achieving a shared, visual understanding and agreement on the definition of a problem, key objectives, or a strategy. It typically involves visually arranging and clustering ideas generated by a group to find common ground. This technique focuses on communication, organization, and social agreement among team members. It is used to achieve emotional and logical buy-in, but it does not involve the cost-benefit analysis, probability assessment, or financial optimization calculations characteristic of quantitative techniques.