Reference no: EM133816910

Homework: Problem Solving vs. Decision Making

Purpose of the Homework

This assessment seeks to evaluate whether you understand the difference between a problem and a decision. This is a weekly objective and important for applying a process that will improve your skills in solving problems and making decisions.

Instructions

For your homework do the following:

1. Using your own words and based on this readings, define problem and decision. Clearly explain how they are different.

2. Read the Five Scenarios below. Identify whether each is a problem or a decision. Explain why.

3. Pick one of the scenarios and explain in detail the process you would use in answering the question at the end of the scenario. For example, would you make a pros and cons list, go with your gut, ask for help, etc.? Make sure that you are specific in your response.

The Five Scenarios

1. You are a state governor. An influential political group's leader comes to meet with you, asking for more money to be spent on shelters for the homeless, on programs to help them get jobs, and on community mental-health programs. You know there is very little money in the state budget to help with new programs. You also know that come election day you will need the group's help. Should you make a promise to the leader to help or not?

2. Imagine you are a physician making a decision on behalf of a patient who has left the matter up to you. The patient has an unusual infection, which lasts for a short time. The infection has a 15% chance of causing permanent brain damage. You may undertake a procedure that will prevent brain damage from the infection (with 100% probability). However, the procedure itself has a 20% chance of causing brain damage itself. Should you undertake the procedure or not?

3. You are the conductor on a train. A woman gets on the train without a ticket. You tell her that the fare is $2, plus $1 for not buying a ticket at the station. The woman refuses to pay the extra dollar, although she has the money. She says she did not know the rule. You do not believe her. You have seen her on the train many times, and you know that there is a sign posted in the station where she got on. The rules say that passengers must be made to pay or they must be put off the train, if necessary, by calling the police. Calling the police would delay the train and make all the other passengers late. All the other passengers are listening to your conversation with the woman. Do you throw her off the train if she does not pay the dollar?

4. You graduate from UMGC and are approached by a successful business person who has reason to believe that your experience with online education makes you qualified to complete this mission: using $2 billion to create the best online school possible. He is offering to pay you $100,000 annually and provide luxury housing. You would have to move to Nigeria. Do you take the job or turn it down?

5. Imagine you have recently inherited $20,000 and you want to save it. You can put it in a bank and get 2% interest, you can buy a U.S. Government bond and get 5% interest, or you can buy a bond issued by the British Government, which pays 15% interest. The government bonds come due in 15 years; that means that the government's promise to pay back your $20,000 in 15 years. In the meantime, you get just the interest. What should you do?