Decision Analysis Flashcards
1
Q
Definition of Decision Making
A
- Decision making is the mental (cognitive) process that results in the selection of a course of action from among several alternative scenarios
2
Q
Two System Approach to Decision Making
A
- System 1 (Reactive Thinking)
2. System 2 (Reflective Thinking)
3
Q
System 1 (Reactive Thinking)
A
- relies heavily on situational cues, prominent memories, trial and error and heuristic thinking (discovering solutions for self) to arrive quickly and confidently at judgments, particularly when situations are familiar and immediate action is required
4
Q
System 2 (Reflective Thinking)
A
- is broad and informed problem-solving and deliberate decision making. It is useful for judgments in unfamiliar situations, for processing abstract concepts, and for deliberating when there is time for planning and more comprehensive consideration
5
Q
Decision Analysis (KT)
A
- is a systematic procedure based on the thinking pattern that we all use when making choices
6
Q
Using systematic decision analysis allows us to make good, confident, reliable, and justifiable decisions because it forces us to stand back from the situation and evaluating four components:
A
- Decision Statement
- Determine Objectives
- Locate Alternatives
- Risk Analysis
7
Q
Decision Statement
A
This statement will accomplish the following:
- Determine our objective
- Specific level of success or resolution
8
Q
Determine Objectives
A
To reach our objective(s) we must consider two categories—our musts and our wants
9
Q
Locate Alternatives /Select Best Alternative
A
- This step involves coming up with alternatives, comparing them to the Musts, eliminating those that fail to meet the Musts, and then rank ordering the alternatives based on total Wants.
10
Q
Risk Analysis
A
The last step of decision analysis is when you look at your choice and determine four things:
- Is there anything I overlooked
- Are there any potential issues as a result of a Must
- Is there a possibility that my choice is invalid (if so how severe are the implications)?
- Is there anything that might prevent me from being comfortable with my choice?
