International Guidance and Controls
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Publication Date:
April 05, 1991
Source:
Darden School of Business
Thomas Stearns must decide whether to continue with planned software development and risk missing the completion deadline on a $20 million project or bite the bullet and make some costly hardware changes that will virtually eliminate the risk of missing the deadline. This introductory decision analysis case: (1) contains a compound (square-circle-square) decision, (2) encourages a discussion of the meaning of probability, and (3) requires the use of sensitivity analysis to handle the unspecified costs of missing the deadline.
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International Guidance and Controls
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