Regrets analysis is a technique devised specifically for situations
where it is not possible to get risk assessment to yield a definitive answer because of
inherent difficulties in quantifying the factors contributing to the risks involved. As the
name implies, regrets analysis addresses the decision-maker's natural fear of doing
something wrong that will cause more harm than good in this type of ill-informed
situation.
The procedure begins with recognition that we at least know the costs of the
alternative actions we can take to minimize risks. Beyond that, we even know
important things about the comparative effectiveness of the alternative actions we
can take to reduce risks. With that much information it is possible to look across all
the possibilities and evaluate how the decision choices compare in terms of the cost
of being wrong. The paper provides a fictional example that shows how this analysis could be used to
select the best course of action for a situation many parents find themselves in, the
purchase of an auto for newly licensed, inexperienced teenage driver. Includes figure.
| Edition : | Vol. - No. |
| File Size : | 1
file
, 210 KB |
| Note : | This product is unavailable in Ukraine, Russia, Belarus |
| Number of Pages : | 7 |
| Published : | 11/01/2005 |
