Is Decision Analysis Beneficial For Use In The Real World ?
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Decision analysis is actually a scientific discipline whose objective is to help individuals, groups or organization in the performance of difficult decisions.
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Making a decision or solving a problem involves a great deal of psychological exercise, where one has to take into account different factors. This process of understanding the philosophy, theory and methodology of a problem and the solution can be termed as decision analysis. In decision analysis, one needs to evaluate complex alternatives using quantitative methods and make a decision in terms of their utility and uncertainty.
Consider this example. A patient comes to visit a doctor and is diagnosed with a urinary tract infection. Symptoms are presented to the doctor. Now, the onus is on the doctor to decide about how to proceed. Doctor has to analyze the situation and take a decision. Doctor has to list out different ways of treatment. He has to decide the possible outcome if one path is preferred over the other. It is important to analyze all the pros and cons of each alternative such as success rate of the treatment procedure, expected survival rate, cost of treatment and possible side effects, if any.
Decision analysis is highly important in real world. This is widely used in almost every phase of life and in every profession including business, government, medicine, economics, law and science. In the field of business, every decision involves an analysis of all the possible future events (costs, outcomes or markets) and selection of the best choice among competing alternatives. Making a decision is making a final selection.
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