
Making Hard Decisions with Decision Tools Suite Update Edition
by Clemen, Robert T.; Reilly, TerenceBuy New
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Summary
Table of Contents
Preface | |
Introduction To Decision Analysis | |
Why Are Decisions Hard? | |
Why Study Decision Analysis? | |
Subjective Judgements And Decision Making | |
The Decision Analysis Process | |
Where Is Decision Analysis Used | |
Where Does The Software Fit In? | |
Where Are We Going From Here? | |
Summary | |
Questions And Problems | |
Case Studies | |
References | |
Epilogue | |
Modeling Decisions | |
Elements Of Decision Problems | |
Values And Objectives | |
Making Money: A Special Objective | |
Values And The Current Decision Context | |
Decisions To Make | |
Sequential Decisions | |
Uncertain Events | |
Consequences | |
The Time Value Of Money: A Special Kind Of Trade-Off | |
Summary | |
Questions And Problems | |
Case Studies | |
References | |
Epilogue | |
Structuring Decisions | |
Structuring Values | |
Fundamental And Means Objectives | |
Getting The Decision Complex Right | |
Structuring Designs: Influence Diagrams | |
Influence Diagrams And The Fundamental-Objectives Hierarchy | |
Using Arcs To Represent Relationships | |
Some Basic Influence Diagrams | |
Constructing An Influence Diagram (Optional) | |
Structuring Decisions: Decision Trees | |
Decision Trees And Influence Diagrams Compared | |
Decision Details: Defining Details: Defining Elements Of The Decision | |
More Decision Details: Cash Flows And Probabilities | |
Using Precisiontree For Structuring Decisions | |
Summary | |
Exercises | |
Questions And Problems | |
Case Studies | |
References | |
Epilogue | |
Making Choices | |
Decision Trees And Expected Monetary Value | |
Solving Influence Diagrams: Overview | |
Solving Influence Diagrams: The Details (Optional) | |
Solving Influence Diagrams: An Algorithm (Optional) | |
Risk Profiles | |
Dominance: An Alternative To Emv | |
Making Decisions With Multiple Objectives | |
Analysis: One Objective At A Time | |
Subjective Ratings For Constructed Attribute Scales | |
Assessing Trade-Off Weights | |
Analysis: Expected Values And Risk Profiles For Two Objectives | |
Decision Analysis Using Precisontree | |
Summary | |
Exercises | |
Questions And Problems | |
Case Studies | |
References | |
Epilogue | |
Sensitivity Analysis | |
Sensitivity Analysis: A Modeling Approach | |
Problem Identification And Structure | |
One-Way Sensitivity Analysis | |
Tornado Diagrams | |
Dominance Considerations | |
Two-Way Sensitivity Analysis | |
Sensitivity To Probabilities | |
Two-Way Sensitivity Analysis For Three Alternatives (Optional) | |
Sensitivity Analysis In Action | |
Sensitivity Analysis Using Toprank And Precisiontree | |
Sensitivity Analysis: A Built-In Irony | |
Summary | |
Exercises | |
Questions And Problems | |
Case Studies | |
References | |
Epilogue | |
Creativity And Decision Making | |
What Is Creativity? Theories Of Creativity | |
Chains Of Thought | |
Phases Of The Creative Process | |
Blocks To Creativity | |
Cultural And Environmental Blocks | |
Value-Focused Thinking For Creating Alternatives | |
Other Creativity Techniques | |
Creating Decision Opportunities | |
Summary | |
Questions And Problems | |
Case Studies | |
References | |
Epilogue | |
Modeling Uncertainty | |
Probability Basics | |
A Little Probability Theory | |
Venn Diagrams | |
More Probability Formulas | |
Uncertain Quantities | |
Examples | |
Decision-Analysis Software And Bayes'' Theorem | |
Summary | |
Exercises | |
Questions And Problems | |
Case Studies | |
References | |
Epilogue | |
Subjective Probability | |
Probability: A Subjective Interpretation | |
Assessing Discrete Probabilities | |
Assessing Continuous Probabilities | |
Pitfalls: Heuristics And Biases | |
Decomposition And Probability Assessment | |
Experts And Probability Assessment: Pulling It All Together | |
Coherence And The Dutch Book (Optional) | |
Constructing Distributions Using Riskview | |
Summary | |
Exercises | |
Questions And Problems | |
Case Studies | |
References | |
Epilogue | |
Theoretical Probability Models | |
The Binomial Distribution | |
The Poisson Distribution | |
The Exponential Distribution | |
The Normal Distribution | |
The Beta Distribution | |
Viewing Theoretical Distributions With Riskview | |
Summary | |
Exercises | |
Questions And Problems | |
Case Studies | |
References | |
Epilogue | |
Using Data | |
Using Data To Construct Probability Distributions | |
Using Data To Fit Theoretical Probability Models | |
Fitting Distributions To Data | |
Using Data To Model Relationships | |
The Regression Approach | |
Natural Conjugate Distributions (Optional) | |
A Bayesian Approach To Regression Analysis (Optional) | |
Summary | |
Exercises | |
Questions And Problems | |
Case Studies | |
References | |
Monte Carlo Simulation | |
Using Uniform Random Numbers As Building Blocks | |
General Uniform Distributions | |
Exponential Distributions | |
Discrete Distributions | |
Other Distributions | |
Simulating Spreadsheet Models Using @Risk | |
Simulation, Decision Trees, And Influence Diagrams | |
Summary | |
Exercises | |
Questions And Problems | |
Case Studies | |
References | |
Value Of Information | |
Value Of Information: Some Basic Ideas | |
Expected Value Of Perfect Information | |
Expected Value Of Imperfect Information | |
Value Of Information In Complex Problems | |
Value Of Information, Sensitivity Analysis, And Structuring | |
Value Of Information And Nonmonetary Objectives | |
Value Of Information And Experts | |
Calculating Evpi And Evii With Precisiontree | |
Summary | |
Exercises | |
Questions And Problems | |
Case Studies | |
References | |
Modeling Preferences | |
Risk Attitudes | |
Risk | |
Risk Attitudes | |
Investing In The Stock Market, Revisited | |
Expected Utility, Certainty Equivalents, And Risk Premiums | |
Keeping Terms Straight | |
Utility Function Assessment | |
Risk Tolerance And The Exponential Utility Function | |
Modeling Preferences Using Precisiontree | |
Decreasing And Constant Risk Aversion (Optional) | |
Some Caveats | |
Summary | |
Exercises | |
Questions And Problems | |
Case Studies | |
References | |
Epilogue | |
Utility Axioms, Paradoxes, And Implications | |
Axioms For Expected Utility | |
Paradoxes | |
Implications | |
A Final Perspective | |
Summary | |
Exercises | |
Questions And Problems | |
Case Studies | |
References | |
Epilogue | |
Conflicting Objectives I: Fundamental Objectives And The Additive Utility Function Objectives And Attributes | |
Trading Off Conflicting Objectives: The Basics | |
The Additive Utility Function | |
Assessing Individual Utility Functions | |
Assessing Weights | |
Keeping Concepts Straight: Certainty Versus Uncertainty | |
An Example: Library Choices | |
Using Software For Multiple-Objective Decisions | |
Summary | |
Exercises | |
Questions And Problems | |
Case Studies | |
References | |
Epilogue | |
Conflicting Objectives II: Multiattribute Utility Models With Interactions | |
Multiattribute Utility Functions: Direct Assessment | |
Independence Conditions | |
Determining Whether Independence Exists | |
Using Independence | |
Additive Independence | |
Substitutes And Complements | |
Assessing A Two-Attribute Utility Function | |
Three Or More Attributes (Optional) | |
When Independence Fails | |
Multiattribute Utility In Action: Bc Hydro | |
Summary | |
Exercises | |
Questions And Problems | |
Case Studies | |
References | |
Epilogue | |
Conclusion And Further Reading | |
A Decision-Analysis Reading List | |
Binomial Distribution: Individual Probabilities | |
Binomial Distribution: Cumulative Probabilities | |
Poisson Distribution: Individual Probabilities | |
Poisson Distribution: Cumulative Probabilities | |
Normal Distribution: Cumulative Probabilities | |
Beta Distribution: Cumulative Probabilities | |
Answers To Selected Exercises | |
Author Index | |
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