WDZ_2 Flashcards
A situation requiring a choice between multiple options
- Decision Problem
A conscious choice among identified options
- Decision
- Types of Decisions:
o Based on Conditions:
Certainty: Outcomes are known.
Risk: Probabilities can be assigned to outcomes.
Uncertainty: Probabilities are unknown.
o Based on Weight:
Strategic: Long-term, high-level decisions.
Operational: Short-term, day-to-day decisions.
Certainty: Outcomes are known.
Risk: Probabilities can be assigned to outcomes.
Uncertainty: Probabilities are unknown.
o Based on Conditions:
Strategic: Long-term, high-level decisions.
Operational: Short-term, day-to-day decisions.
o Based on Weight:
A framework for analyzing strategic interactions between decision-makers.
- Game Theory
Decision-making in situations where outcomes depend on uncontrollable factors (e.g., weather, market conditions).
- Games Against Nature
A table showing the potential outcomes for different decisions and states of nature.
- Payoff Matrix
A visual tool to represent decision-making processes and outcomes.
- Decision Tree
beauty of nature
o Universal
appreciation for different musical styles
o Cultural
styles and trends within groups
o Social
individual preferences
Personal
Focuses on definitions
o Philosophy
Focuses on profit and market equilibrium
o Economics
Focuses on customer satisfaction
o Marketing
Focuses on engineering and manufacturing
o Operations Management