Spring 2000	Choice and Chance: The Mathematics of Decision Making Assignments

PDF Version of this document QR 26: Choice and Chance The Mathematics of Decision Making   Unit II Study Guide: Tradeoffs under Certainty Synopsis: Swapping among attributes helps explore preferences and clarify choices. References: Smart Choices (SC) by Hammond, Keeney, and Raiffa; Decisions with Multiple Objectives (DMO) by Keeney and Raiffa; Decision Making Under Certainty (DMUC) by Schleifer and Bell. For Class II.1 on February 17, 2000 Topics: Consequences Tables. Dominated Alternatives. Tradeoffs with Even Swaps. Reading: In SC, review pp. 65-75 and 237-238. Read Chapter 6.   For Class II.2 on February 22, 2000 Topics: Efficient (Pareto) Frontier in Act Space. Indifference Curves and Value Functions. Conditional Preferences. Preferential Independence and Additive Value Functions. Mid-value and weighting techniques. Read: DMO pp. 66-72, 100-101, 117-125. Due: Activity II. For Sections II.1 on February 22 or 23, 2000 Topics: Value Function and Dynamic Modeling calculations with Excel. For Class II.3 on February 24, 2000 Topics: Capital Budgeting. Time Value of Money. Borrowing or Lending at Bank Rates. Net Present Value. Internal Interest Rates. Exponential Growth. Read: DMUC pp. 127-132. For Class II.4 on February 29, 2000 Topics: Dynamical Systems. Amortizing a Loan. Population Growth. Sustainability. Social Tradeoffs. Due: Unit II Exercises. Case Preparation on Whale Populations.

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