Using Influence Diagrams to Map Out Decisions

Discover a Highly Effective way to Frame Decisions

Influence diagrams are a good way to get a high-level view of the key factors in a decision. They are a highly effective way to frame decisions, identify uncertainties, and clarify the decision criteria. They help:

  • Clarify complex decisions
  • Identify the uncertainties in the decision that may benefit from sensitivity analysis
  • Show the key factors and the relationship between those factors
  • Determine how the factors relate to the value used as the decision criteria
  • Identify where expert assessment may be needed for key variables
  • Clarify the order in which uncertainty might best be reduced to arrive at better decisions
  • Communicate how the decision is structured

I'll show you how to build one to help you improve your next decision. 

This video comes from my Maximizing Expected Value Course

CPAs: Want to get CPE credit for videos and courses like this? Check out my CPE page.


>
Success message!
Warning message!
Error message!