Assignment Chapter 1
ISEN 669
Assignment 1
Questions from Chapter 1
40 Points
Name: UMA M PANNEERSELVAM Date: 01/29/2012
Bring to class Monday night for discussion and to hand in.
DL students: Formulate your responses and then e-mail to Shirish (TA) on or before Monday night, January 30, 2012.
TA: Shirish Lamichhane TA E-mail: slamic2@neo.tamu.edu
Respond to the following questions from chapter 1 on pp12-13. Use this document to respond to the following question using MS Word. Type your responses below each question shown below and use as much space as you need for your response.
1.2 Explain how modeling is used in decision analysis. What is meant by the term "requisite decision model"?
Ans: Modeling is used in decision analysis in several ways. Models facilitate gaining insights of a decision problem that may not be apparent or obvious on the surface. For example, influence diagrams and decision trees are used to represent the decision problem. Hierarchical and network models are used to understand the relationships among different aspects or objectives. Utility functions are used to model the way in which decision-makers value different outcomes and trade off competing objectives.
A requisite decision model is a model that can be considered requisite only when no new intuitions emerge about the problem. In simple words, a requisite decision model is a model whose form and content are sufficient to solve a particular problem. Everything required to solve the problem is represented in the model or can be simulated by it (Phillips, 1987, p.37).
1.3 What role do subjective judgments play in decision analysis?
Ans: Subjective judgments are important ingredients in decision analysis. Discovering and developing these judgments involves thinking hard and systematically about important aspects of a decision, which forms an essential part of decision analysis. However, it should also be kept in mind that personal insights might be limited and
Assignment 1
Questions from Chapter 1
40 Points
Name: UMA M PANNEERSELVAM Date: 01/29/2012
Bring to class Monday night for discussion and to hand in.
DL students: Formulate your responses and then e-mail to Shirish (TA) on or before Monday night, January 30, 2012.
TA: Shirish Lamichhane TA E-mail: slamic2@neo.tamu.edu
Respond to the following questions from chapter 1 on pp12-13. Use this document to respond to the following question using MS Word. Type your responses below each question shown below and use as much space as you need for your response.
1.2 Explain how modeling is used in decision analysis. What is meant by the term "requisite decision model"?
Ans: Modeling is used in decision analysis in several ways. Models facilitate gaining insights of a decision problem that may not be apparent or obvious on the surface. For example, influence diagrams and decision trees are used to represent the decision problem. Hierarchical and network models are used to understand the relationships among different aspects or objectives. Utility functions are used to model the way in which decision-makers value different outcomes and trade off competing objectives.
A requisite decision model is a model that can be considered requisite only when no new intuitions emerge about the problem. In simple words, a requisite decision model is a model whose form and content are sufficient to solve a particular problem. Everything required to solve the problem is represented in the model or can be simulated by it (Phillips, 1987, p.37).
1.3 What role do subjective judgments play in decision analysis?
Ans: Subjective judgments are important ingredients in decision analysis. Discovering and developing these judgments involves thinking hard and systematically about important aspects of a decision, which forms an essential part of decision analysis. However, it should also be kept in mind that personal insights might be limited and
References: Robert. T. Clemen , Terrence Reilly, “Making Hard Decisions with Decision Tools”, Duxbury Press; 1 edition, Jun 2000