Deciding

Question 1

Business case

Answer 1

 “Captures the reasoning for initiating a project or task. It is often presented in a well-structured written document, but may also sometimes come in the form of a short verbal argument or presentation.”

Question 2

Opportunity case

Answer 2

 “The value of the best alternative forgone where, given limited resources, a choice needs to be made between several mutually exclusive alternatives. Assuming the best choice is made, it is the ‘cost’ incurred by not enjoying the benefit that would have been had by taking the second best available choice.”

Question 3

Intuition

Answer 3

Personal experience coded into your personal neural network, which means your intuition is dangerous outside the bounds of your personal experience.

Question 4

Local vs global optimum

Answer 4

A local optimum of an optimization problem is a solution that is optimal (either maximal or minimal) within a neighboring set of candidate solutions. This is in contrast to a global optimum, which is the optimal solution among all possible solutions, not just those in a particular neighborhood of values.”

Question 5

Decision trees

Answer 5

 “A decision support tool that uses a tree-like graph or model of decisions and their possible consequences, including chance event outcomes, resource costs, and utility.”

Question 6

Sunk cost

Answer 6

“A cost that has already been incurred and cannot be recovered.”

Question 7

Availability bias

Answer 7

 “People tend to heavily weigh their judgments toward more recent information, making new opinions biased toward that latest news.”

Question 8

Confirmation bias

Answer 8

“The tendency to search for, interpret, favor, and recall information in a way that confirms one’s preexisting beliefs or hypotheses, while giving disproportionately less consideration to alternative possibilities.”