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Decision Making - Intermediate Level: risk assessment INTERMEDIATE

Exam-focused quick response training ★ worksheet: 20 intermediate-level decision making questions. Worksheet 13 of 30 targets risk assessment. Build proficiency in outcome evaluation, decision criteria, logical choices with detailed solutions. Ideal for mid-level competitive exam preparation.

📝 Worksheet 13 of 30 • 20 questions • ⏱️ Estimated time: 20 minutes • 🎯 Intermediate level

What you'll learn in this worksheet:
Your progress through Decision Making
Worksheet 13 of 30 (43% 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.
decision, sequential, probability, expected-value

Question 2

Situation: A student needs to choose between two summer programs: Program A costs $2000, lasts 6 weeks, and provides college credit. Program B costs $1200, lasts 4 weeks, and offers internship experience. What should be the primary criterion for this decision?
This addresses the fundamental value proposition of each program's outcomes. College credit provides long-term academic value, while internship offers immediate practical experience. The choice depends on career goals, making this the primary criterion.
decision, criteria, priorities

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.
decision, emergency, crisis, time-critical

Question 4

Decision: Company considering automation that will eliminate 200 jobs but increase efficiency by 40% Considering all stakeholder impacts, what is the most ethical and practical approach?
Balances efficiency gains with social responsibility. Saves 100 jobs while improving efficiency, providing transition support for affected workers. This approach balances competing interests while prioritizing overall welfare.
decision, stakeholders, ethics, corporate

Question 5

Decision: Launch new product now or wait 6 months for more market research? Based on expected value analysis, what is the optimal strategy?
Launch now: 40% success → expected value = 0.4×1000 = 400. Wait: 70% success after research → expected value = 0.7×900 = 630 (accounting for 100 research cost). Higher EV makes waiting optimal.
decision, sequential, probability, expected-value

Question 6

Decision: Hospital choosing between specialized cancer center or expanded general services Considering all stakeholder impacts, what is the most ethical and practical approach?
Greatest good for greatest number - 10,000 patients vs 500. General services impact broader community while cancer center serves niche population. This approach balances competing interests while prioritizing overall welfare.
decision, stakeholders, ethics, corporate

Question 7

Situation: Business expansion decision for cash-strapped startup with limited runway (6 months of cash left) Considering risk assessment, what is the most appropriate decision?
With only 6 months runway, survival is priority. Maintaining current operations gives 90% survival chance with minimal investment, avoiding overextension risk.
decision, risk, uncertainty, investment

Question 8

Decision: Accept job offer immediately or negotiate with current employer? Based on expected value analysis, what is the optimal strategy?
Accept: guaranteed 25% raise. Negotiate: 50% chance of 15% raise, 50% chance of 0% raise → expected = 7.5% raise. Guaranteed 25% > expected 7.5%.
decision, sequential, probability, expected-value

Question 9

Situation: You're the captain of a ship that hits an iceberg. You have 30 minutes before sinking. 100 passengers, lifeboats capacity 80. What is the best decision in this emergency situation?
In maritime emergencies, traditional protocol prioritizes vulnerable populations. This maintains order, maximizes survival of those with least chance of self-rescue.
decision, emergency, crisis, time-critical

Question 10

Situation: Business expansion decision for cash-strapped startup with limited runway (6 months of cash left) Considering risk assessment, what is the most appropriate decision?
With only 6 months runway, survival is priority. Maintaining current operations gives 90% survival chance with minimal investment, avoiding overextension risk.
decision, risk, uncertainty, investment

Question 11

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.
decision, opportunity-cost, trade-offs

Question 12

Situation: A farmer with limited land can either: grow wheat (guaranteed $5000 profit), grow organic vegetables (potential $8000 profit, 40% crop failure risk), or lease land to solar company (guaranteed $6000) Considering opportunity costs, what is the best choice?
Expected value of vegetables = $8000 × 0.6 = $4800, which is less than guaranteed $5000 from wheat. Solar lease gives $6000 guaranteed, making it optimal considering risk.
decision, opportunity-cost, trade-offs

Question 13

Decision: Invest in R&D for new product or improve existing product? Based on expected value analysis, what is the optimal strategy?
New product: 30% success → 500 profit, 70% failure → -200 loss = EV = 150-140=10. Improve existing: 80% success → 200 profit, 20% no gain = EV=160. Existing product improvement has higher EV.
decision, sequential, probability, expected-value

Question 14

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.
decision, risk, uncertainty, investment

Question 15

Decision: City council deciding on new affordable housing project location Considering all stakeholder impacts, what is the most ethical and practical approach?
Distributes impact across neighborhoods, reduces concentrated opposition, provides better integration with existing communities. This approach balances competing interests while prioritizing overall welfare.
decision, stakeholders, ethics, corporate

Question 16

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.
decision, matrix, weighted-evaluation

Question 17

Situation: You're the captain of a ship that hits an iceberg. You have 30 minutes before sinking. 100 passengers, lifeboats capacity 80. What is the best decision in this emergency situation?
In maritime emergencies, traditional protocol prioritizes vulnerable populations. This maintains order, maximizes survival of those with least chance of self-rescue.
decision, emergency, crisis, time-critical

Question 18

Scenario: Selecting a software vendor for company operations Criteria weights: Reliability (40%), Features (35%), Cost (25%) Scores: Vendor A: 9/8/7, Vendor B: 7/9/8, Vendor C: 8/7/9 Based on weighted multi-criteria evaluation, which option should be selected?
Weighted scores: A=9×0.4+8×0.35+7×0.25=3.6+2.8+1.75=8.15; B=2.8+3.15+2.0=7.95; C=3.2+2.45+2.25=7.9. Vendor A scores highest.
decision, matrix, weighted-evaluation

Question 19

Situation: Business expansion decision for cash-strapped startup with limited runway (6 months of cash left) Considering risk assessment, what is the most appropriate decision?
With only 6 months runway, survival is priority. Maintaining current operations gives 90% survival chance with minimal investment, avoiding overextension risk.
decision, risk, uncertainty, investment

Question 20

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.
decision, matrix, weighted-evaluation
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