MSCI211 Lecture Notes - Lecture 9: Thalassemia, Satisficing, Financial Statement

• School: University of Waterloo
• Department: Management Sciences
• Course: MSCI211
• Professor: Clifford Blake

Document Summary

Steps in the rational decision-making model: define the problem - not a visible easy ass questions either, identify the criteria, allocate weights to the criteria, develop alternatives/options, evaluate the alternatives, select the best alternative. Problem identification: problems that are visible tend to have a higher probability of being selected than those that are important. => bc its easy to recognize those visible problems, decision maker want to appear competent /ontop of their problems. Decision maker"s self interest can affect the problem selection in the first place. Limiting the rational: bounded rationality- there are limitations to our ability to interpret/ process/act on information, satisficing - good enough is good, intuitive decision making- used when there"s a high level of uncertainty- facts are limited, several solutions exist. Can fix by focusing on the goal and look for info that counters ur belifs, and increase options. Group decision making- can increase the quality of decision making.