Quantitative techniques help a manager improve the overall quality of decision making. These techniques are most commonly used in the rational/logical decision model, but they can apply in any of the other models as well. Among the most common techniques are decision trees, payback analysis, and simulations.

1.Decision trees

Adecision treeshows a complete picture of a potential decision and allows a manager to graph alternative decision paths. Decision trees are a useful way to analyze hiring, marketing, investments, equipment purchases, pricing, and similar decisions that involve a progression of smaller decisions. Generally, decision trees are used to evaluate decisions under conditions of risk.

2.Payback analysis

Payback analysis comes in handy if a manager needs to decide whether to purchase a piece of equipment. S

3.Simulations

Simulation is a broad term indicating any type of activity that attempts to imitate an existing system or situation in a simplified manner.