After completion of this course each student would be able to:
The Principles of Decision Making is a compulsory course and has been offered by the Department of Industrial Engineering and Management.
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CLOs |
Descriptions |
Taxonomy Level |
PLO |
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1 |
DESCRIBE the decision strategies at various levels to understand the nature of decision |
C2 |
2 |
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2 |
APPLY various decision-making processes and techniques for making sound decisions. |
C3 |
4 |
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3 |
DEVELOP approaches of decision strategies in real world scenarios. |
C4 |
11 |
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Course Contents:
Introduction, Decision making processes, Decision making techniques, Nature of management decisions, Characteristics of decision making, Decision making under risk, Decision Making under certainty, Decision making under uncertainty.
Introduction, Problem identification and model structuring, Specification of objectives, Definition of time horizon, Alternative actions, Uncertain consequences, Decision tree diagram, Assessment of Consequences, Decision criteria.
Introduction, Decision elements, Definition of problems and decomposition into decision elements, Single and multiple stage decisions, Single stage decision models, Two stage decision models, Other linked decisions.
Introduction, limitations of decision analysis, Assumption of Single decision maker, Biases in probability assessment (Representative ness, Availability, Anchoring and Adjustment), Impact of biases in decision analysis.
Introduction, Present Value, Investment, Types of investment, Applications to investment decision, Average rate of return.
Bases resulting from attention, context effects, Group decision making, Biases resulting from under processing, Biases resulting from over processing, Deciding on defense.
Subjective interpretation of probability in decision making, objective interpretation of probability in decision making, subjective probability assessment process, effectiveness of probability assessment
