Decision Making Example: Buying a Car

1
Decision Making Example Buying a Car
Objectives 1. dependable 2. low cost 3. fun
Alternatives 1. used Focus 2. new Tercel

• Feasibility criteria
• cost lt xx
• seats gt 2 adults
• Merit criteria
• low cost
• color
• mileage

include insurance, available options in evaluation
Problem model MAUT (aka, merit analysis)
Selection new Tercel (twice) used Focus (last
time)
evaluates monthly payments and insurance w.r.t.
impact on other activities desired vehicle
options included?
Yes
Is further
analysis
required
Evaluated alternatives 3 times.
?
No
Bought used Focus
from Clemen, R.T. (1996). Making Hard Decisions
An introduction to decision analysis (2nd
edition) Belmont, CA Wadsworth Publishing Co.
2
From Klein, G.A. A recognition-primed decision
(RPD) model of rapid decision making. In Klein,
Orasanu, Calderwood, Zsambok (eds.) Decision
Making in Action Models and Methods (1993).
Ablex Publishing Corp.