Decision Analysis: Part 1  p.79-102

Section 1: Introduction p. 79-81

Make sure you understand the concepts and terminology surrounding Figure 1.
Not much of the rest of the chapter will make sense until you do!

Section 2: Three Classes of Decision Models p. 81-92

Decisions Under Certainty p. 81-82
Decision maker knows  which state of nature will occur or will find out before he or she must actually decide.
Decisions Undet Risk p. 83-9
Study pages 83-85
Be sure you understand Equation 1; you'll have to use it on tests.
Skim Risk Profile p. 85
Skim pages 85-89, "The cost of lost goodwill"

Decisions Under Ignorance p.89-93
Study the first paragraph of this section          
Study Maximin Criterion p. 90-91
    You will be tested on this criterion.
Skim the ressst of this section

Section 3: The Expected Value of Perfect Information p. 93-94

Skim this section.  It's a very important topic very poorlt presented;
Study my hotdog vendor example instead.

Section 4: Utilities and Decisions Under Risk p. 94-101

Skip this section; it's beyond the svope of the course.

Section 5: A Mid Chapter Review p. 101-102

Study this section thoroughly, inclding the summary of the parts we've skipped or skimmed.