Managerial Economicsintermediate
Place the four stages of the managerial decision-making process in the correct chronological order from first to last.
Answer
Identify the problem, Gather relevant data, Analyze the gathered data, Draw conclusions and evaluate alternatives
Explanation
### The order
1. **Identify the problem**: the manager first defines what needs attention.
2. **Gather relevant data**: evidence is collected after the decision problem is clear.
3. **Analyze the gathered data**: analysis turns evidence into findings that can inform a choice.
4. **Draw conclusions and evaluate alternatives**: the manager uses the analysis to judge possible actions.
### The concept
A decision process is more reliable when it moves from a clear problem to relevant evidence, then to analysis and evaluation. Gathering information before defining the problem risks collecting facts that do not help with the actual choice.
### Terms
- **Data**: raw facts and figures that have not yet been processed.
### Remember
Define the question before collecting evidence, then analyze before choosing.
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