Multi-Attribute Utility Theory (MAUT): Decision Making Tool

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Please see response attached for complete response (also in part below). I hope this helps and take care.

RESPONSE:

1. Create two worksheets using the MAUT decision-modeling tool. Each worksheet should illustrate a different job-related or business decision

This is straightforward, as the worksheet is provided on the website, it is just a matter of following the steps and filling in worksheet and totaling it for two different business problems.

What types of questions are you planning to use? Have you given this some thought? Did your class lectures provide examples of specific types of business questions to consider?

Let's look at an example of a medical decision, using the outline below, uploaded from the website http://campus.murraystate.edu/academic/faculty/paula.waddill/PSY327/MAUT%20worksheet.doc (the example is highlighted in bold black).

Example 1:

Multi-Attribute Utility Theory (MAUT)
Preparing a Decision-making Worksheet

This handout is a summary of the information presented in Halpern, pp. 331-338. For additional instructions, information, and a worked example, refer to those pages in the text.

1. Frame the Decision. Make a precise statement of the problem that will help to narrow it. Give clear and careful thought to this first step. The way in which the problem is defined will determine the character of all the following steps.

The doctor has a patient with high cholesterol and needs to determine the best alternative treatment to lower her cholesterol level.

2. Generate Alternatives. Think of all the possible alternatives that could solve the problem. Be realistic, but do not evaluate the alternatives at this step. You may also seek input from other people and sources for additional alternatives. Some of the alternatives may seem less appealing than others, but include them anyway. This is not the point at which you eliminate or evaluate anything. Write each alternative in a separate column across the top of the worksheet. For each alternative, leave room for a second column where you can do your final calculations.
Someone with high cholesterol has three choices (or combination thereof):
o Diet
o Exercise
o Medication

3. List the Considerations (Aspects). Write down all the variables (considerations) that affect the decision. It is very important to give careful thought to the considerations; you may wish to seek additional input from others. Do not put the considerations on the worksheet yet.

In this example, let's say that the relevant dimensions are:
1. Minimizing financial cost,
2. Minimizing cost in terms of time consumed, and
3. Maximizing acceptability in terms of physical comfort.

4. Weight the Considerations. Give each consideration an importance score that reflects its relative importance to you. Use a 5-point scale ranging from 1 = of slight importance to me and 5 = of great importance to me. Some considerations will probably have the ...