ReasoningAbility.com

Decision Making - Intermediate-Advanced Level: critical choices INTERMEDIATE-ADVANCED

Strategic expert challenge ★ for decision making: 20 intermediate-advanced-level problems. Worksheet 19 of 30 - Focus: critical choices. Develop expertise in decision analysis, outcome evaluation, decision criteria with step-by-step solutions. Ideal for advanced developing learners targeting advanced concepts with increasing complexity.

📝 Worksheet 19 of 30 • 20 questions • ⏱️ Estimated time: 20 minutes • 🎯 Intermediate-advanced level

What you'll learn in this worksheet:
Your progress through Decision Making
Worksheet 19 of 30 (63% complete)

Question 1

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 2

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.
decision, criteria, priorities

Question 3

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 4

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.
decision, matrix, weighted-evaluation

Question 5

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 6

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.
decision, opportunity-cost, trade-offs

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

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 9

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.
decision, criteria, priorities

Question 10

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.
decision, risk, uncertainty, investment

Question 11

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 12

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 13

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 14

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 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.
decision, risk, uncertainty, investment

Question 16

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 17

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 18

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.
decision, matrix, weighted-evaluation

Question 19

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.
decision, opportunity-cost, trade-offs

Question 20

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
Previous Worksheet Next Worksheet