The success and failure of any organization or individual depends to the large extent on the ability of decision-making. In an organization, management have to make several decisions like make or buy, drop or continue, accept or reject, change the process or continue, capital investment (capital budgeting), etc. In case of an individual there may be decided that whether to do or not, accept or reject or ignore etc. The sense of decision-making is only viable if there are alternatives for selection, unless there is no need for decision making. Decision maker has to select option from different alternatives in such a way that it can maximize the value. To overcome the problem of decision-making, decision theory helps decision maker to make proper decision.
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