Question

Chapter 3 presents three types of decision-making environments. Give examples of decisions from each decision-making environment that you have been involved with in your experience. Or Summarize and share with your classmates a Decision Analysis example that you can find on the Web or with another resource. Your initial response to the question is due on Thursday; please respond to two classmates by Sunday. In all discussion question responses ensure that you correctly reference sources you used in researching and analyzing your response. Use appropriate scholarly citation methods.

Answer 1

Chapter 3 presents three types of decision-making environments. Give examples of decisions from each decision-making environment that you have been involved with in your experience. Or Summarize and share with your classmates a Decision Analysis example that you can find on the Web or with another resource. Your initial response to the question is due on Thursday; please respond to two classmates by Sunday. In all discussion question responses ensure that you correctly reference sources you used in researching and analyzing your response. Use appropriate scholarly citation methods.

Decision making is the thinking process of picking a choice between few of the available options. It serves as a purpose to remove any uncertainty and hesitation before we decide on something. The best decisions usually are the decision that can bring success and effective results. When doing decision making, we must look at both positives and negatives of each option. We should always think and consider all the alternatives before making up a decision. Sometimes there might be a better alternative choice that we did not put under consideration, therefore it is important for us to always keep track and record down the reason why decision are made.

There are 3 types of decision making environment that we can classify. There are:

• 1-Decision Making in Certain Conditions-

Decision making under a certain conditions means that the person who makes the decision have all the complete and necessary information for him to make the decision. With all the information available, that person is able to predict what the decision result will will lead into. By able to predict the outcome we can easily make a certain decision with certainty.

Example-

I just moves to KL to work and looking for place to rent. I had been offered with two alternative rental places. Rental A and Rental B. Rental A is near to my workplace and is within walking distance. Rental B is a bit far from my working place and required him to drive to walk. Both rental fees are RM500 per room. With the complete information above, i will be able to make decision in a very certain condition.

• 2-Decision Making in Uncertain Conditions

Making a decision when you are uncertain of the condition is similar to lack of information that can help us to decide. Because of insufficient information, the decision maker doesn’t know the future and not able to predict the outcome of every alternative he has. In order to make a decision with such conditions, the decision maker would have to judge and made the decision based on their experience. If they do not have such experience, they have to consult and seek advice from people who have more experience. There is a little risk involved there however since we are not able to predict the result however experience from the past would close the gap.

Example-

I am currently using a very old version of Nokia Phone. Seeing everyone is using a very advanced phone, I decided to change my phone to a smart phone. Smart phones in the market are using window OS, Apple OS and Android OS. I never used such interface on a phone before. Which phone OS is more easy to use and which function of the phone is better, I am not that certain. I then seek advice from my friends and asks for opinions. After getting enough advice, I then bought the smart phone. In this scenario, Jason does not have all the sufficient information, so I gets advices from my friends. I am making the decision in an uncertain condition.

• 3-Decision Making in Risky Conditions

Making a decision in risky conditions means that we are making a decision that might result the problem even big or from bad to very bad. Only minimal information is available to predict the outcome. A wrong evaluation on making the decision under risky conditions might even result the company suffer huge lost of profits or even bankrupt.

example-

• I have been in a relationship with Mariah for almost 1 year. we both love each other. Mariah suggested to me that both of us should get married. I now faced with a situation where i have uncertain conditions that can help me to decide. Taking the relation to the next stage or don’t get married. I am not able to predict the outcome of the marriage either would make her happier or suffer. This is because I only knows the girl for almost 1 year, but sometimes it took very long or even forever to know one’s true nature. I have not yet gets approval from my parents and is not sure if Mariah parents like me or not. I am also doubting will this marriage will effects her current career or not. However since I love Mariah so much, I just agrees to marry her. In this situation, Jason is making a decision under a risky condition.

I hope tha above answer would help you