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Decision Making

  • Alberto De Marco
Chapter

Abstract

This chapter provides Project Management practitioners with some basic methods for decision making by using a sample case-study. First, decision analysis and decision trees are presented as practical methods to evaluate options with regard to situations where the outcome can be known. To this end, basics of decision and utility theory are highlighted, as well as the notion of risk premium. Then, if the result of the decision is highly uncertain, Monte Carlo simulations are introduced as a help in the task of making the choice.

References and Additional Resources

  1. Bedford T, Cooke R (2001) Probabilistic risk analysis: foundations and methods. Cambridge University PressGoogle Scholar
  2. Chapman CB (2002) Managing project risk uncertainty: A constructively simple approach to decision making. John Wiley, HobokenGoogle Scholar
  3. de Neufville R (1990) Applied systems analysis. McGraw-Hill, New YorkGoogle Scholar
  4. Flanagan R, Norman G (1993) Risk management and construction. Wiley-BlackwellGoogle Scholar
  5. Haimes YY (2004) Risk modeling, management, and assessment. John Wiley, HobokenGoogle Scholar
  6. Lifson MW, Shaifer EF (1982) Decision and risk analysis for construction management. John Wiley, HobokenGoogle Scholar

Copyright information

© Springer International Publishing AG, part of Springer Nature 2018

Authors and Affiliations

  1. 1.Department of Management and Production EngineeringPolitecnico di TorinoTurinItaly

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