Supplement to Ch. 5 Decision Theory

Supplement to Ch. 5 Decision Theory - SupplementtoCh.5...

Info icon This preview shows pages 1–8. Sign up to view the full content.

View Full Document Right Arrow Icon
                 Supplement to Ch. 5:                  Decision Theory
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
        Decision Theory & Decision Making                   Decision Theory:  Represents a systematic  approach to decision making Decision Making:  Selecting a preferred  alternative from a number of alternatives.   # of alternatives - options   Criteria –  to evaluate alternatives       Uncertain future  
Image of page 2
        Decision Theory & Decision Making                   Characteristics of a decision making situation  ideally suited for applying Decision Theory   # of alternatives - options   Criteria –  to evaluate alternatives       Possible to estimate financial consequences   Uncertain future  
Image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
        Decision Theory                  Decision making process: Identify problem Establish criteria to evaluate alternatives    Identify alternatives Analyze and compare alternatives Select best alternative Implement best decision Feed Back and corrective action  
Image of page 4
    Decision Theory: Causes of poor  decisions                  Unforeseeable circumstances Failure to recognize or admit mistakes  Addressing symptoms  to the problem Skipping a step in systematic approach Sub-optimization Bounded rationality  
Image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
        Decision Theory: Environments                   Decision making environments: Decision making under  complete uncertainty Decision making under partial uncertainty -  risk Decision making under  complete certainty    
Image of page 6
        Decision Theory                 
Image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 8
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern