Decision Making Under Certainty Notes: Definitions & Explanations PDF | Download eBooks
Study Decision Making Under Certainty lecture notes PDF with project management definitions and explanation to study What is Decision Making Under Certainty?. Study decision making under certainty explanation with project management terms to review project management course for online MBA programs.
Decision Making Under Certainty Definition:
Decision-making under certainty implies that the states of nature and the expected payoffs for each state of nature are known with 100% accuracy.
Project Management: A Systems Approach to Planning, Scheduling, and Controlling by Harold Kerzner?
Decision Making Under Certainty Notes:
65Decisions are to be made at every step of the project, from start till the end. The process of making decisions is called decision making. Decision making can be done on the basis of three situations; certainty, uncertainty, and risk. It is easy to make decisions under certainty. Decision making under certainty involves the accurate know how and understanding of all the nature states and their outcomes. The predicted outcome is considered to be 100% accurate. A payoff matrix is developed to mathematically represent the decision making process. In the process of decision making under certainty, all the nature states are listed in the payoff matrix which are not under the control of the project team. The strategies for each state of the nature is developed. The outcomes of each selected strategy are shown as the payoff table elements.
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