Role of LP in Economic Decision Making
by Agricultural Applications These applications fall into categories of farm economics and farm management. The former deals with agricultural economy of a nation or region, while …
Tag: DECISION SCIENCE
Shadow Prices
Shadow prices reflect true values for factors and products for the calculation or estimations of prices in social cost-benefit analysis. J. Tinbergen defines them, “Shadow prices …
Concept of Duality
The Duality in Linear Programming states that every linear programming problem has another linear programming problem related to it and thus can be derived from it. The …
Solution of LP Problem with the help of graphical and Simplex Method
The Graphical Method (graphic solving) is an excellent alternative for the representation and solving of Linear Programming models that have two decision variables. Exercise #1: A workshop has three …
Formulation of Linear Programming Model
Maximization Case Let’s understand the maximization case with the help of a problem. Suppose a firm produces two products A and B. For producing the …
Application of Probability Theory in Business Decision Making
Most every business decision you make relates to some aspect of probability. While your focus is on formulas and statistical calculations used to define probability, …
Probability Meaning and Approaches of Probability Theory
In our day to day life the “probability” or “chance” is very commonly used term. Sometimes, we use to say “Probably it may rain tomorrow”, …
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