05 Decison making under risk

Question 1

What does an arrow from a chance node to a decision node represent?

Answer 1

This arrow indicates that the outcome of the chance node is known before the decision is made

Question 2

What can we do to avoid cycles in an Influence Diagram?

Answer 2

Event definitions need to be more clear, especially with regard to the timing of events

Question 3

What are the advantages of a decision Tree?

Answer 3

Advantages:
* Illustration with all relevant details
* Better suited for multi-stage problems
Disadvantages:
- complex with many alternatives and uncertainties

Question 4

What are the advantages and disadvantages of a Influence Diagram?

Answer 4

Advantages:
- Used in early stages of structuring the process
- Compact representation of the components of a problem and their interactions
Disadvantages:
- Does not contain all information/details
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