Accession Number:

ADA210443

Title:

Designing an Organization in a Hypothesis Testing Framework

Descriptive Note:

Technical rept.

Corporate Author:

MASSACHUSETTS INST OF TECH CAMBRIDGE LAB FOR INFORMATION AND DECISION SYSTEMS

Report Date:

1989-06-01

Pagination or Media Count:

22.0

Abstract:

This paper deals with problems of quantitative organizational design. We endorse the development of a Normative Decision Theory for the quantitative study of distributed organizations. We suggest that Hypothesis Testing is an appropriate paradigm for this framework. To demonstrate this, we present numerical interests for a team consisting of two decision makers DMs which performs binary hypothesis testing and study the effect of different communication protocols we show that near-optimal performance can be achieved with few communications bits. We summarize some other organizational design problems we have studied and present some tentative conclusions and suggestions for future research.

Subject Categories:

  • Administration and Management
  • Statistics and Probability

Distribution Statement:

APPROVED FOR PUBLIC RELEASE