Choice under Certainty with only one KPI

Published by Mario Oettler on

Choice under certainty means that all options and their pay-offs are known. The most straightforward situation is if having only one key performance indicator (KPI) that affects our decision. Suppose we have to choose between three machines that yield different profits. The profit is the only KPI that matters for our choice.

Machine 190
Machine 260
Machine 3120

If we prefer higher profits to lower ones, we should choose Machine 3.