Total Error in Decision-Making. Implications, Biases, and Guidance

Essay aus dem Jahr 2023 im Fachbereich BWL - Unternehmensführung, Management, Organisation, , Sprache: Deutsch, Abstract: This paper examines the concept of total error and its implications in decision-making processes, particularly in fields requiring precise measurements such as clinical medicine and manufacturing quality control. It delves into the sources of total error, including measurement error, and emphasizes the importance of accuracy in minimizing total error. Drawing on contributions from Deming and contemporary scholars, the paper highlights cognitive biases and heuristics that can contribute to total error, affecting judgement and decision-making. Through examples like Ai Weiwei's documentary 'Human Flow,' it illustrates how errors in judgement can have significant real-world consequences. Additionally, the paper provides an overview of the statistical treatment of error in science, focusing on total analytic error and bias measurement methods. Practical guidance for minimizing total error in laboratory testing is also discussed, underlining the importance of quality control procedures and continuous education for professionals in ensuring accurate measurements.