Assignment on Decision Making pdf
Added on 2021-04-16
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Running head: DECISION MAKING 1Decision MakingNameInstitution
DECISION MAKING 2Decision MakingHicks Patrick, Steele, and Spencer (2013) describes decision making as the process of making choices among several alternative courses of action. Every decision making process depends on the information gathered and the chosen alternative can affect the lives of others as well as one's personality (Tripathi, 2008). As such, increased effectiveness in decision making can be significant in maximizing effectiveness to the current dilemma. However, before making any decision, Aven (2016) advises individuals to assess the risk of their possible decision. Such assertions portray decision making as an important task with severe outcomes if a wrong decision is made. In this regard, Merlhiot et al. (2017) acknowledge that several factors such as uncertainty and emotion of the outcome usually influence our decision making. Decision problem currently struggling withCurrently, I am struggling to make a decision whether to insure my house or not. My uncle gave me a house before he passed away and I have always contemplated on how to keep the house safer. I want to make sure that I secure the house against uncertainties of fire, theft andmore so natural disasters like a hurricane. Am indeed in a dilemma of either insuring the property against fire or Hurricane and theft or invest the money in an income generating activity.Against this background, I would not wish to lose the only house I own or fail to prevent risks that could possibly occur. Moreover, uncertain consequences involved in hurricane incidences complicates the situation since it is very difficult to predict nature. Ideally, events with uncertain consequences usually cause counterintuitive effects (Merlhiot et al., 2017). Additionally, fire and theft incidences too are unpredictable. Nevertheless, theft can be controlled by taking security
DECISION MAKING 3measures to protect the house by installing closed-circuit television (CCTV) and alarm system to alert me in case of the incident. Unfortunately, fire incidences can be controlled but their nature is accidental and can cause more damage if it takes place. Without a prompt response, fire can spread to other properties that can cause double loss. In this regard, it is very confusing which insurance policy to take into considering since ifeither fire or hurricane beckons, they lead to total damage. Due to lack of financial resources, I am struggling to choose which policy to take. Furthermore, one should take a policy that runs fortwelve months, and with the current changes in climate, a hurricane can dawn within the year, and thus making it a must priority. But on fire incidences, it is quite unpredictable and the effect is the same as a hurricane. Interestingly, Lerner et al. (2015) caution making a decision in such complex situations since the consequences are uncertain that can lead to biased risk perception and inappropriate decision making. In this circumstance, Starcke and Brand (2012); Dietrich (2010) suggest that dilemma promotes the use of affect heuristics while making decisions. As such, am struggling to make a decision to select a suitable and convenient insurance policy since most policies have limited alternative courses of action. Decision contexts and objectivesThe context of my decision making falls between either to insure against fire or hurricane. Of note, the basic structure of decision making involves uncertainties, alternatives, consequences of alternatives and uncertainties, in addition to objectives and preferences to the decision maker (Eisenführ, Weber & Langer, 2009; Bujar et al. 2017). In essence, important decisions on applicable alternatives should be made in advance, even though it is the problem I am currently struggling with. The process of evaluating my option requires that I consider the objectives as I express the criteria which will reflect my desires concerning the house as I weigh
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