1. List the elements of a decision problem, and explain how they interrelate.
2. What is the role of probabilities in a decision problem, and how do these probabilities arise?
3. What is a decision tree?
The decision problem is the type of complex computational decision making that can be simplified using the yes-or-no probability consequences algorithm. The model of solving such a problem is of probabilistic nature.
Answer and Explanation:
The elements of the decision problem are- acts, events, outcomes, and payoffs. The element acts and events are a consequence of the doer while the outcome and payoffs are the results of acts and events and the value that the doer is placing on the occurrences of the events respectively.
The probabilities are the degree of inclination of values towards the rate of success or failure of the event occurring in the decision problem. The probabilities arise as the ratio of favorable and unfavorable outcomes to the total number of outcomes.
The decision tree is the layout of the logic diagram obtained by writing out the algorithm to solve a decision problem. This diagram is the consequence of conditional controlled statements.
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from Business 319: Negotiations & Conflict ManagementChapter 5 / Lesson 4