Decision Making - Intermediate Level: benefit analysis INTERMEDIATE

Level up your decision making skills with this comprehensive review. 20 intermediate-level problems await in Worksheet 14 of 30. Focus area: benefit analysis. Learn decision criteria, logical choices, decision puzzles through systematic practice. Designed for mid-level learners seeking moderate complexity with mixed patterns.

📝 Worksheet 14 of 30 • 20 questions • ⏱️ Estimated time: 20 minutes • 🎯 Intermediate level

What you'll learn in this worksheet:
Your progress through Decision Making
Worksheet 14 of 30 (46% complete)

Question 1

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 2

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 3

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 4

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 5

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.

Question 6

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 7

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 8

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 9

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.

Question 10

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 11

Situation: Sarah has $10,000 to either: pay off credit card debt (12% interest), invest in stock market (expected 10% return), or put in savings account (2% interest) Considering opportunity costs, what is the best choice?
Paying off 12% debt provides guaranteed 12% 'return' (interest saved), which exceeds the expected 10% stock market return and is risk-free. The opportunity cost of not paying debt is 12% interest accrual.

Question 12

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.

Question 13

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.

Question 14

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 15

Decision: Pharmaceutical company setting price for life-saving drug Considering all stakeholder impacts, what is the most ethical and practical approach?
Balances profit motive with access to medicine. Differentiated pricing maximizes revenue while ensuring affordability in developing nations. This approach balances competing interests while prioritizing overall welfare.

Question 16

Scenario: Selecting employee benefits package Criteria weights: Employee satisfaction (35%), Cost to company (30%), Retention impact (25%), Administrative ease (10%) Scores: Health focus: 9/5/8/7, Retirement focus: 6/8/7/8, Work-life balance: 8/7/9/6 Based on weighted multi-criteria evaluation, which option should be selected?
Health=3.15+1.5+2.0+0.7=7.35; Retirement=2.1+2.4+1.75+0.8=7.05; Work-life=2.8+2.1+2.25+0.6=7.75. Work-life package optimizes across criteria.

Question 17

Scenario: Choosing a location for new factory Criteria weights: Labor costs (25%), Logistics (25%), Tax incentives (20%), Skilled workforce (20%), Energy costs (10%) Scores: Location X: 8/7/9/6/8, Location Y: 6/8/7/9/7, Location Z: 7/9/6/8/9 Based on weighted multi-criteria evaluation, which option should be selected?
X=2.0+1.75+1.8+1.2+0.8=7.55; Y=1.5+2.0+1.4+1.8+0.7=7.4; Z=1.75+2.25+1.2+1.6+0.9=7.7. Location Z scores highest.

Question 18

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%.

Question 19

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 20

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.
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