Lesson 1: influence diagrams

Question 1

What is the general structure of a decision problem

Answer 1

• one ore more choices (decision node)
• one or more random events (chance node)
• a final result (value node)

Question 2

which are the two main tools to structure a decision?

Answer 2

1. Influence diagrams (qualitative)
2. decision tree (quantitative)

Question 3

what are the three types of arcs in an influence diagram?

Answer 3

1. conditional arcs (end in an event node)
2. informational arcs (end in a decision node)
3. functional arcs (end in a result node)

Question 4

What is the purpose of functional arcs?

Answer 4

They have the purpose of allowing the correct assignment of the final payoffs (consequences). They are just instrumental

Question 5

what is a sequntial decision problem?

Answer 5

when the alternative of one decision is known before another decision is made. Decisions are made over time, with later choices depending on previous ones.

Example: I decide to crack the egg or not after I have decided to inspect it or nor