ABSTRACT
Many aspects of decision-making are to a large extent qualitative, like the discovery and formulation of the problem itself. Searching for and gathering information also requires deliberate choices, as does the compilation of the information into a number of alternative courses of action. In other words, there is a soft side to any decision process. But quantitative information abound in almost all types of decisions. Often when something is being assessed, the different alternatives of action are given monetary or other numeric values. On the basis of the given values, decisions are made using (hopefully) a decision rule but sometimes only a rule of thumb or the repetition of an old decision. This chapter will teach you the basics of making decisions in relatively simple decision situations.
