Chapter 4 - Decisions vs. Problems

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Chapter 4 - Decisions & Problems

Decision-Making

assessing risk when weighing outcomes (IF this happens, THEN we'll do x)

what-if scenarios appropriate

strategizing, looking ahead to maximize utility with decision outcome

making choices under conditions of scarcity

limited time, budget, resources

Problem Solving

could be unknown risk/surprise

non-programmed decision-making: what do we do now?

could be known/anticipated risk

programmed decision: follow the plan

mitigating risk - still have to live with outcomes of decisions