decision_making_flashcards
Term
Definition
Identify the Problem
Recognizing the issue or challenge that requires a decision.
Establish Decision Criteria
Determining the factors that will influence the decision.
Weigh Decision Criteria
Assigning importance to each factor.
Generate Alternatives
Listing possible solutions or courses of action.
Evaluate the Alternatives
Comparing options based on decision criteria.
Choose the Best Alternative
Selecting the most suitable solution.
Implement the Decision
Putting the chosen solution into action.
Evaluate the Decision
Assessing the outcome and effectiveness of the decision.
Criteria Weighting
Assigning numerical values to decision factors.
Expected Value
A probability-weighted measure of an outcome.
Risk vs. Uncertainty
Risk is measurable uncertainty, while uncertainty is unmeasurable risk.
Trade-offs
Balancing different criteria or factors.
Opportunity Cost
The cost of forgoing the next best alternative.
Rational Decision-Making
A systematic approach based on logic and evaluation.
Bounded Rationality
Decision-making limited by cognitive limitations and available information.
Heuristics
Mental shortcuts that simplify decision-making.
Satisficing
Choosing a ‘good enough’ option rather than the optimal one.
What is the first step in the decision-making process?
Identify the Problem
Which step involves assigning importance to factors?
Weigh Decision Criteria
What does evaluating alternatives involve?
Comparing options using criteria
Which term refers to the cost of choosing one option over another?
Opportunity Cost
What is the difference between risk and uncertainty?
Risk is measurable, uncertainty is not
What is the purpose of evaluating the decision?
Assessing effectiveness
