Using Decision Analysis to find Lowest Cost

Decision analysis is a management tool designed to help remove emotion from decision making. It breaks everything down to objective numbers so we can make the most financially sound decision. The more experience we get as managers, the more valuable our instincts or “gut feelings” are, but most sociological studies show that gut feelings are often wrong. Going with your gut is like flipping a coin–you’ll be wrong half the time. By charting everything out, we can be more confident in our decisions, and also help explain them to others in a rational manner.

For one of my classes this semester, Project Risk Analysis, we were tasked with constructing a decision analysis table and a decision tree. We could apply this to any project or scenario, even made-up ones, and I decided to do something a bit different. I’ll likely write my final research paper on the Panama Canal, since this year is the anniversary of its building and I’ve been reading about it, but I decided to perform decision analysis on my other current hobby: ArcheAge.

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