Question: Discuss three ways errors can arise in developing and executing decision analysis models in business situations, and provide examples of the business consequences of each error. Explain how analytics professionals can help to prevent such errors.

Student: Three ways that errors can occur when using a decision analysis model are misunderstanding the business problem, not using the appropriate formula, or not verifying the sensitivity test. If the business problem is not framed up correctly then there can be issues with the output that may not take into account, all of the variables. This would provide the wrong output value. If the wrong formula in the solver is used because the calculations in the spreadsheet are incorrect, linear instead of non-linear, then the output will be incorrect. Both of these two situation can cause a misunderstanding of the answer to the problem without the user knowing it. The last error is not verifying the sensitivity test. If a sensitivity test is not ran on main inputs of the problem, then there could be a possibility that if the solution is implemented, and there is a change in the variable, then the company could lose money..

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