Chapter 2 Q2 Describe the three quantitative models typically used by decision support systems.

Quantitative methods and DSS
Decision maker used four analysis techniques using a Decision Support System (DSS) (James A. O Brien 1999):
-What-If Analysis.
-Sensitivity Analysis.
-Goal-Seeking Analysis.
-Optimization Analysis.
The decision maker changed different variables of the problem to view the change on the remaining variables using the what-if analysis. For example:
-Change in the revenue and expenses figures.
-Increase or decrease of Tax rate figure.
-Increase or decrease of Marketing on sale.
Sensitivity analysis is a special type of what-if analysis. The decision maker will change only one variable of the problem to view change on the remaining variables. For example, change in the expenses again and again or increase/decrease the tax rate.
The decision maker will set a target figure for the required variables and try to evaluate the remaining variables using a goal-seeking analysis, such as an amount figure is set for the profit variable and make changes in the other variables to achieve it.
The decision maker to achieve the maximum feasible value for the target variable uses optimization analysis. Optimization analysis is a special type of goal-seeking analysis. Goal- seeking analysis is made without considering any constraints where as optimization analysts is made with considering all constraints, such as budget, schedule and resources.