Decision Making Basics

Hey there! Can you tell me what an uncertainty environment means in decision making?

• An uncertainty environment is when outcomes are easily predictable

• An uncertainty environment is when all outcomes are certain

• An uncertainty environment is when there is no need for decision making

• An uncertainty environment in decision making is when the outcomes of different choices are not known or cannot be accurately predicted.

Hey there! Let's dive into the world of decision making together. Can you tell me the basics of decision making?

• Decision making is a simple process with no defined steps

• The basics of decision making involve defining the problem, generating alternatives, evaluating options, making a choice, implementing the decision, and reviewing the outcomes.

• Decision making does not involve evaluating options

• Decision making does not require reviewing the outcomes

Hey there! Can you explain what a payoff table is in decision making?

• A payoff table is a tool for calculating the distance between two points

• A payoff table in decision making is a matrix that shows the possible outcomes of different decisions based on various scenarios.

• A payoff table is a chart used for tracking employee salaries

• A payoff table is a type of board game played with dice

Hey there! Let's dive into the world of decision making. What does 'state of nature' mean in this context?

• The state of nature in decision making refers to the weather conditions at the time of decision

• The state of nature in decision making refers to the emotional state of the decision maker

• The state of nature in decision making refers to the physical location where the decision is made

• The state of nature in decision making refers to the set of circumstances or conditions that exist before a decision is made, often involving uncertainty and unpredictability.

How does Aashi decide on the best course of action?

• Choose the first option that comes to mind

• Ask a magic eight ball

• Identify the problem, gather information, consider alternatives, evaluate options, make a decision, implement, and monitor.

• Flip a coin

Hey there! Let's dive into the world of decision making with the help of payoff tables. How do payoff tables play a crucial role in comparing different decision alternatives based on possible outcomes and associated payoffs?

• Payoff tables are only useful for simple decision-making scenarios.

• Payoff tables are significant in decision making as they help in comparing different decision alternatives based on possible outcomes and associated payoffs.

• Payoff tables are irrelevant in decision making and should be avoided.

• Payoff tables provide exact solutions without any uncertainties.

A pessimistic decision-making criterion is sometimes called

• Optimistic criterion
• Maximax
• Maximin

• Minimax

In using the criterion of realism, the coefficient of realism (alpha )

• is the probability of a good state of nature

• describes the degree of optimism of the decision maker.

• is usually less than zero

• describes the degree of pessimism of the decision maker.

The three types of decision making environments are

• Utility, risk and certainty

• Hazard, risk and certainty

• Certainty, Risk, Uncertainty
• utility, equity and certainty

Another name of Laplace criterion

• Minimax criterion
• Maximin criterion
• Hurwicz criterion
• Equally likely criterion