Basic Decision Making terms

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What is a decision? A response in a situation that is composed of 3 parts:

Two or more courses of actions

The decision maker can form expectations about the future events and possible outcomes for each course of action.

The consequences associated with the possible outcomes can be evaluated based on the decision makers current goals and personal values.

A rational choice can be defined as one that meets four criteria:

It is based on the decision maker's current assets (money, physiological state, psychological capacities, social relationships and feelings)

Possible consequences of the choice

When consequences are uncertain, likelihood is evaluated according to the basic rules of probability theory.

It is a choice that is adaptive within the constraints of those probabilities and the values or satisfaction associated with each of the possible consequences of the choice.