ReasoningAbility.com

Decision Making - Intermediate Level: optimal decisions INTERMEDIATE

Comprehensive weakness targeting worksheet covering 20 intermediate-level decision making problems. Worksheet 18 of 30 emphasizes optimal decisions. Master critical choices, decision analysis, outcome evaluation through detailed explanations. Difficulty: moderate complexity with mixed patterns. Tailored for mid-level preparation.

📝 Worksheet 18 of 30 • 20 questions • ⏱️ Estimated time: 20 minutes • 🎯 Intermediate level

What you'll learn in this worksheet:
Your progress through Decision Making
Worksheet 18 of 30 (60% complete)

Question 1

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 2

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 3

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 4

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 5

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.
decision, risk, uncertainty, investment

Question 6

Situation: Emergency room with one ventilator left. Four patients need it: 20-year-old (90% survival), 40-year-old (70% survival), 60-year-old (50% survival), 80-year-old (30% survival). What is the best decision in this emergency situation?
Utilitarian approach - maximizing total life years saved. Youngest patient has highest potential remaining lifespan and good survival probability.
decision, emergency, crisis, time-critical

Question 7

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.
decision, criteria, priorities

Question 8

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.
decision, sequential, probability, expected-value

Question 9

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 10

Situation: A professional can either: take a promotion with 20% raise but 10 hours more work weekly, or start a side business with potential for 50% income increase but high failure risk Considering opportunity costs, what is the best choice?
Promotion offers guaranteed 20% raise with known trade-offs. Side business has high failure risk (typically 50%+). The opportunity cost of not taking promotion is guaranteed income loss for uncertain gain.
decision, opportunity-cost, trade-offs

Question 11

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 12

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.
decision, criteria, priorities

Question 13

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.
decision, opportunity-cost, trade-offs

Question 14

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 15

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.
decision, criteria, priorities

Question 16

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 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

Situation: Career decision for mid-level professional with family responsibilities (sole earner, 2 children) Considering risk assessment, what is the most appropriate decision?
As sole earner with family responsibilities, income stability is critical. The downside risk of startup failure (50%) or business failure (70%) is too high given family obligations.
decision, risk, uncertainty, investment

Question 19

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 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.
decision, sequential, probability, expected-value
Previous Worksheet Next Worksheet