Open Access. Powered by Scholars. Published by Universities.®
- Discipline
- Institution
- Publication
Articles 1 - 3 of 3
Full-Text Articles in Business
Technical Note: Comparative Static Analysis Of Information Value In A Canonical Decision Problem, Jeffrey Keisler
Technical Note: Comparative Static Analysis Of Information Value In A Canonical Decision Problem, Jeffrey Keisler
Jeffrey Keisler
To gain insight into the behavior of the value of information, this paper identifies specific rules for a canonical decision problem: the two-act linear loss decision with normal prior probability distributions. Conditions are derived for which the expected value of perfect information increases when mean and standard deviation are both linear functions of an exogenous variable. A variety of richer decision problems can be adapted to the problem, so that the general results obtained here can be immediately applied to understand drivers of information value.
Allocating Contractor Risks In The Hanford Waste Cleanup, Jeffrey M. Keisler, William A. Buehring, Peter D. Mclaughlin, Mark A. Robershotte, Ronald G. Whitfield
Allocating Contractor Risks In The Hanford Waste Cleanup, Jeffrey M. Keisler, William A. Buehring, Peter D. Mclaughlin, Mark A. Robershotte, Ronald G. Whitfield
Jeffrey Keisler
Organizations may view outsourcing as a way to manage risk. We developed a decision-analytic approach to determine which risks the buyer can share or shift to vendors and which ones it should bear. We found that allocating risks incorrectly could increase costs dramatically. Between 1995 and 1998, we used this approach to develop the request for proposals (RFP) for the US Department of Energy’s (DOE’s) privatization initiative for the Hanford tank waste remediation system (TWRS). In the model, we used an assessment protocol to predict how vendors would react to proposed risk allocations in terms of their actions and their …
Teaching Decision Making With Baseball Examples, J. Eric Bickel
Teaching Decision Making With Baseball Examples, J. Eric Bickel
Eric Bickel
Sports examples can be wonderful vehicles for teaching OR/MS concepts. Baseball is particularly well suited to teaching statistics/probability, Markov decision processes, and decision analysis. This paper details a baseball example I developed to teach fundamental decision making skills. This example has been used successfully to teach decision making to undergraduates and graduates in technical and non-technical disciplines. It has also been used effectively in industry for training new MBAs and seasoned executives.