Homework -

1) Identify and briefly describe four factors that tend to make hard decisions hard. Are there others? If so, what are they?

2) List and briefly describe the steps that YOU go through in making a tough decision. This should be the process you used prior to taking this course and it should differ from your answer to the next two questions. There is no "right" answer.

3) List and briefly describe the (6) major steps of Clemen's "Decision Analysis Process."

4) List and briefly describe the (5) major steps of my "Decision Analysis Process."

5) What are the four major elements of a Decision? Define each.

6) Within the context of decision theory, what is meant by each of the following:

a. Objective:

b. Attribute:

c. Attribute Parameter Value:

d. Attribute Weight Value:

e. Value System:

7) How are these terms related?

8) Why study formal decision theory?

9) What is a "Requisite Model?"

10) What is the "Decision Context?"

Some Other Potential Test Questions:

1) What are the properties of a "good decision?"

2) What is meant by the "best outcome?"

3) What are "intuition" and "aesthetics?" What role should they play in decision making?

4) What is the difference between subjective decision making and analytic decision making? Which do you think performs better over the long run? Why?

5) What is the "proper role" of subjectivity in decision theory?

6) What is "decision analysis" (according to Clemen)?

7) What does decision analysis enable one to do?

8) Why should one use formal Decision Analysis?

9) What is mean to say that Decision Theory is descriptive or prescriptive? Which do you believe it to be and why? Note there is no "right" answer.

10) Within the context of decision theory, what is an "Objective?"

11) How do "End Objectives" differ from "Means Objectives?"

12) How is the concept of "weight value" related to the concept of "aesthetics?"

13) Identify and briefly describe the three major types of "decision architectures."

14) What is an "uncertain event?"

15) How do uncertain events complicate a decision?

16) What are the "consequences" of a decision? What are they defined in terms of?

17) What is an "end state?" How is it characterized? How does one measure the desirability of different end states?

18) What is a "Planning Horizon?"

19) How does one determine the "present value" of the outcome of an N-year investment?