Organisations Face Decision-Making Environments for All Types of Problems That

question 74

Multiple Choice

Organisations face decision-making environments for all types of problems that require optimisation techniques.Under which circumstances might a manager use optimisation techniques?

• A)To help them decide which combination of projects a firm should invest in
• B)To help in investment trading decisions
• C)To determine the optimal configuration of fibre-optic cable in a network that may include many thousands of connection points
• D)All of the above are appropriate environments for use of optimisation techniques
• Organisations face decision-making environments for all types of problems that require optimisation techniques, such as the following.
• • Business executives use genetic algorithms to help them decide which combination of projects a firm should invest in, taking complicated tax considerations into account.
• • Investment companies use genetic algorithms to help in trading decisions.

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Definitions:

Return Volatility

A quantitative assessment of the spread of returns for a specific security or market index.

Treasury Bills

Short-term government securities with maturity periods typically of one year or less, considered a low-risk investment.

Least Risky

Describes an investment or action that is considered to have the lowest probability of causing financial loss or harm.

Canadian Common Stocks

Equity in publicly listed Canadian corporations, indicative of part ownership in these enterprises.