Decision Making - Beginner Level: decision logic BEGINNER

This foundation builder 🌟 worksheet contains 20 beginner-level decision making problems. Worksheet 1 of 30 focuses on decision logic. Practice decision logic, choice selection, optimal decisions with our step-by-step solutions. Difficulty: foundational concepts and basic patterns. Recommended for entry-level learners.

📝 Worksheet 1 of 30 • 20 questions • ⏱️ Estimated time: 20 minutes • 🎯 Beginner level

What you'll learn in this worksheet:
Your progress through Decision Making
Worksheet 1 of 30 (3% complete)

Question 1

Decision: Expand to international market or focus on domestic growth? Based on expected value analysis, what is the optimal strategy?
International: 25% chance of 1000 profit, 75% chance of 100 loss → EV=250-75=175. Domestic: 60% chance of 400 profit, 40% chance of 50 loss → EV=240-20=220. Domestic focus has higher expected value.

Question 2

Situation: A company can use $500,000 to: upgrade equipment (increase efficiency 20%), hire employees (expand capacity 30%), or keep as cash reserve (maintain financial stability) Considering opportunity costs, what is the best choice?
30% capacity expansion provides highest growth potential if market demand supports it. The opportunity cost of hiring is foregone efficiency gains, but capacity growth typically drives revenue more directly.

Question 3

Situation: Factory fire with 50 workers inside. You can either: try to extinguish fire (30% success, 10 minutes, saves all) or evacuate (100% success, 5 minutes, saves 40 workers). What is the best decision in this emergency situation?
Expected value: Extinguish = 50×0.3 = 15 expected saved; Evacuate = 40 guaranteed saved. Guarantee of 40 saved is better than 15 expected.

Question 4

Situation: Factory fire with 50 workers inside. You can either: try to extinguish fire (30% success, 10 minutes, saves all) or evacuate (100% success, 5 minutes, saves 40 workers). What is the best decision in this emergency situation?
Expected value: Extinguish = 50×0.3 = 15 expected saved; Evacuate = 40 guaranteed saved. Guarantee of 40 saved is better than 15 expected.

Question 5

Situation: A hospital must choose between purchasing new MRI machine (improves diagnosis) or upgrading emergency room (reduces wait times). What should be the primary criterion for this decision?
In healthcare, patient outcomes should be the primary decision criterion. Both options improve care, but the one with greater impact on patient health should be prioritized.

Question 6

Situation: Factory fire with 50 workers inside. You can either: try to extinguish fire (30% success, 10 minutes, saves all) or evacuate (100% success, 5 minutes, saves 40 workers). What is the best decision in this emergency situation?
Expected value: Extinguish = 50×0.3 = 15 expected saved; Evacuate = 40 guaranteed saved. Guarantee of 40 saved is better than 15 expected.

Question 7

Decision: Outsource manufacturing or build in-house facility? Based on expected value analysis, what is the optimal strategy?
Outsource: guaranteed 300 cost savings. In-house: 70% chance of 500 savings, 30% chance of 100 loss → EV=350-30=320. Outsourcing gives guaranteed savings with lower risk.

Question 8

Decision: Expand to international market or focus on domestic growth? Based on expected value analysis, what is the optimal strategy?
International: 25% chance of 1000 profit, 75% chance of 100 loss → EV=250-75=175. Domestic: 60% chance of 400 profit, 40% chance of 50 loss → EV=240-20=220. Domestic focus has higher expected value.

Question 9

Situation: Investment decision for conservative investor nearing retirement (5 years from retirement) Considering risk assessment, what is the most appropriate decision?
For a conservative investor nearing retirement, capital preservation is paramount. Government bonds provide guaranteed returns with zero loss risk, aligning with the short time horizon and risk tolerance.

Question 10

Situation: John has 4 hours of free time: study for exam (improve grades), work part-time job (earn $60), or exercise and relax (improve health) Considering opportunity costs, what is the best choice?
Long-term academic success typically has higher lifetime value than $60 or immediate health benefits. The opportunity cost of studying is short-term earnings, but education ROI justifies this choice.

Question 11

Decision: Expand to international market or focus on domestic growth? Based on expected value analysis, what is the optimal strategy?
International: 25% chance of 1000 profit, 75% chance of 100 loss → EV=250-75=175. Domestic: 60% chance of 400 profit, 40% chance of 50 loss → EV=240-20=220. Domestic focus has higher expected value.

Question 12

Scenario: Choosing a marketing strategy for product launch Criteria weights: Reach (30%), Engagement (30%), Cost (25%), Speed (15%) Scores: Digital: 9/8/7/9, Traditional: 6/7/8/5, Hybrid: 8/9/6/8 Based on weighted multi-criteria evaluation, which option should be selected?
Digital weighted=2.7+2.4+1.75+1.35=8.2; Traditional=1.8+2.1+2.0+0.75=6.65; Hybrid=2.4+2.7+1.5+1.2=7.8. Digital scores highest, but Hybrid balances all factors.

Question 13

Situation: Technology adoption decision for traditional manufacturing company Considering risk assessment, what is the most appropriate decision?
Partial automation balances risk and reward - moderate investment ($800k) with good efficiency gain (40%) and acceptable failure risk (15%). Full automation's 30% failure risk on $2M is too high for traditional company.

Question 14

Situation: A family needs to choose between buying a house in Suburb A (good schools, long commute) or Suburb B (shorter commute, average schools). What should be the primary criterion for this decision?
For a family decision, children's long-term development typically takes priority over convenience factors. Education quality has lasting impact on children's future opportunities.

Question 15

Situation: Medical treatment decision for 75-year-old patient with heart condition Considering risk assessment, what is the most appropriate decision?
For an elderly patient, balancing success rate with mortality risk is key. Medication offers reasonable success (60%) with low mortality (5%), avoiding surgical risks while providing meaningful improvement.

Question 16

Scenario: Selecting a candidate for promotion Criteria weights: Technical skills (30%), Leadership (30%), Experience (25%), Cultural fit (15%) Scores: Candidate P: 9/7/8/8, Candidate Q: 7/9/7/7, Candidate R: 8/8/9/9 Based on weighted multi-criteria evaluation, which option should be selected?
P=2.7+2.1+2.0+1.2=8.0; Q=2.1+2.7+1.75+1.05=7.6; R=2.4+2.4+2.25+1.35=8.4. Candidate R scores highest across all criteria.

Question 17

Situation: Factory fire with 50 workers inside. You can either: try to extinguish fire (30% success, 10 minutes, saves all) or evacuate (100% success, 5 minutes, saves 40 workers). What is the best decision in this emergency situation?
Expected value: Extinguish = 50×0.3 = 15 expected saved; Evacuate = 40 guaranteed saved. Guarantee of 40 saved is better than 15 expected.

Question 18

Situation: During a riot, you must decide whether to deploy tear gas on a crowd of 500 protesters (risk of injury to 50, but stop violence) or let them protest (risk of 100 injuries from violence). What is the best decision in this emergency situation?
Risk assessment: 50 injuries from tear gas vs 100 injuries from violence. Immediate deployment minimizes total harm despite short-term side effects.

Question 19

Situation: A company must decide between expanding to Location A (high rent, skilled workforce) or Location B (low rent, requires training employees). What should be the primary criterion for this decision?
This considers the strategic impact beyond immediate costs. Even with higher rent, a skilled workforce and better market access can generate higher returns, making growth potential the primary criterion.

Question 20

Decision: Expand to international market or focus on domestic growth? Based on expected value analysis, what is the optimal strategy?
International: 25% chance of 1000 profit, 75% chance of 100 loss → EV=250-75=175. Domestic: 60% chance of 400 profit, 40% chance of 50 loss → EV=240-20=220. Domestic focus has higher expected value.
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