10_Decision_Making

Two alternative programs have been proposed assume

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Unformatted text preview: ate or process into a new state or process   What makes decisions difficult   uncertainty   conflict   impact of decision 17   Normative Models           ideal performance under ideal circumstances set clear norms on how decisions should be evaluated Expected Value Theory Expected Utility Theory Descriptive Models   what people actually do when making decisions   Satisficing   Prospect Theory   Expected Value Theory   Expectation ▪  belief of how likely it is that an option has a particular feature and leads to a particular outcome   Probability ▪  A numerical measure of the strength of a belief in a certain proposition, p ("Proposition") = {a number from 0 to 1 inclusive}   Expected Utility Theory   Utility   personal value rather than objective monetary value Expected Value Theory & Expected Utility Theory •  How to...
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This note was uploaded on 01/26/2014 for the course PSYCH 228 taught by Professor Broaders during the Winter '11 term at Northwestern.

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