Robust Decision Making
One of the most highly used decision making processes, robust decision making has taken the lime light for me. There are three reasons for the same:
1. Use of probabilities: The use of probabilities enables one to give a level of certainty to the outcome of an event. This allows one to also use the concept of 'expected' payoffs which help compare and contrast two projects.
2.' Robust'ness: Robust decision making is wholesome, encompassing all the elements of a problem and then comes up with the best solution. One can consider it an economic 'best response' to maximize profits given the economic environment which the firm faces.
3. Factual Ease: By providing facts and figures RDM makes it possible for one to present an argument in an all conclusive way rather than stating vague theories or just mere words. This type of decision making results in a solution that is based on the concept of rationality and the solution has little chance of being counter-argued over.