Decision Making-2

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Decision Making-2

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How Milhouse framed his decision

In doing such decision-making , it is reliable that individual uses frame in accordance to how they think and how they consider a certain problem

This includes the individual 's conception about the act , so as to the possible outcomes and contingencies ADDIN EN .CITE Amos Tversky200711 43Amos Tversky Daniel KahnemanThe Framing of Decisions and the Psychology of

Choice 2007http /www .cs .umu .se /kurser /TDBC12 /HT99 /Tversky .html (Amos Tversky , 2007

Milhouse as a businessman who wanted to add more profit to his company made a view that if he is able to get the new additional equipment , the company might excel more in its performance so as to it 's profit

Obviously Milhouse was persuaded by the salesman hence he considered the possible outcomes and the possible loss of the company

As it was explained through the psychology of choice , Milhouse evaluated first the equipment and since he thinks it will work for the better future performance of the company , then he made his decision of purchasing through basing to the frame of act which states that most of the decision is in risk averse or explained that a certain investor seeks the security of a smaller risk provided ADDIN EN .CITE Amos Tversky200711 43Amos Tversky Daniel KahnemanThe Framing of Decisions and the Psychology of Choice 2007http /www .cs .umu .se /kurser /TDBC12 /HT99 /Tversky .html (Amos Tversky , 2007

In addition for this explanation , an example would be : a certain investment will cost 500 , the explained possible profit will be 1200 hence if ever the investment will fail and the company loss will be at 700 which depicts that the loss will be low comparing to the possible gain

Therefore Milhouse 's frame for making his decision is viewed as if ever the purchase will not be effective , the loss for the company will be equivalent to a can of soda ' which definitely states that it 'll just be a small account if ever the equipment will not work out for the company

Now explaining Milhouse 's frame in doing his decision pertaining to purchasing the additional equipments for his company is stated as a small loss for a big attainment or big account

How an Alternative Frame May Result to a different decision

An alternative frame would make the decision-risk lower than that of when an individual bases only on a single frame as his /her decision-making principle ADDIN EN .CITE OuelletJulian Ouellet Worst-Case /Loss-Oriente d Frames2007http /www2 .beyondintractability .org /essay /worst-case_frames (Ouellet , 2007

If the certain frame that Milhouse used as his ground for his decision didn 't work out or if he thinks that it is too risky for him to use his frame in making that important decision , then he could use his alternative frame to lessen the possibilities of creating a fault

Considering an alternative...