Structure the Problem

Abstract

The steps in applying decision analysis are: structure the problem, elicit probabilities, integrate all information, judgment, and consequences, and analyze the results. The steps in structuring the problem are: draw the relevance diagram, draw the decision tree, and write the value formulas. This chapter covers structuring the problem, including common difficulties and issues in performing the steps. Those issues often revolve around handling dependencies, deciding what to include, determining sequence, and keeping the analysis from getting too complex.