Chapter2 - Module 2 Modeling Decisions ELEMENTS OF DECISION...

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1 Module 2 Modeling Decisions ELEMENTS OF DECISION PROBLEMS
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2 Learning Objectives Elements of decision situations Money and decision problems
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3 Elements of Decision Problems 1. Values and objectives 2. Decisions to make 3. Uncertain events 4. Consequences
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4 Values and Objectives Values: things that matter Objective: what you want to achieve
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5 Values and Objectives Values create decision situations Values compel the need for objectives
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6 Values and Objectives Each decision situation involves a specific context Context influences the viable objectives A decision model must include all of the relevant objectives
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7 Decisions to be Made At least two alternatives required. “Doing nothing” may be a viable alternative In many cases, several sequential decisions are necessary
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8 Uncertain Events Important decisions must often be made without knowing the future Potential results from resolving uncertain events are outcomes Relevant outcomes have impacts on objectives
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This note was uploaded on 12/04/2011 for the course BUSINESS 500 taught by Professor John during the Spring '11 term at Kansas.

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Chapter2 - Module 2 Modeling Decisions ELEMENTS OF DECISION...

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