Dmd Case Analysis of Making a Decision of Buying a House

Assignment Form

|Course: | Data, Model and Decision |

|Instructor: | Dr. Feng Haolin |

|Homework: |Decision Analysis |

|Name: | Group 1. Li Yuechuan/ Pankaj Malhotra/ Liang Yuan/ Wu Zhuhua/ Tan Jing/ Gu Junling |

|Student ID No.: | |

|Class: |11FB |

STUDENT DECLARATION

I declare that this assignment is my own work, which all sources of reference are acknowledged in full and it has not been submitted for any other course.

Signature:…………………… Date:…………

Content:
Part 1. Case Description----------------------------------------------------------------------------- 3
Part 2. Decision Making Analysis-------------------------------------------------------------------4
Part 3. Decision Tree----------------------------------------------------------------------------------5
Part 4. Sensitivity Analysis---------------------------------------------------------------------------6
Part 5. Conclusion-------------------------------------------------------------------------------------8

Part 1. Case Description
The case is about a house that has been on sale in Shaker Heights, Ohio, for one day. Debbie and George Calvert are seriously thinking of making an offer towards the house, which has been valued at $400,000. Their broker has advised them to make an offer of as close to the asking price as possible, as there are around 20 other interested potential buyers. Debbie