A better decision can be made by using a
five-step decision-making process.
What is the Walker family's problem?
The family must decide which of several
houses to buy.
• What are the alternatives or choices?
Make a grid like this one. Write the
addresses of the five houses in the
alternatives column. The one house
which costs more than the family can
afford should not be listed as an alternative.
alternatives
Bass
Monroe
Dester
Fyler
Sample Grid: Walker Family
city
+
Pick a family to house shop for.
Fill in the criteria for that family-the things
they would like in a house.
patio
Econ 01
+
+
alternatives
three
high
school bed-
near
rooms
+
criteria
+
ng 3
+
+
+
two-car base-
ment
garage
+
We must assume this family cannot afford a house outside its budget constraint, no matter how perfect the
house may seem in other ways.
+
• What are the criteria, or important things, the family should consider when making a decision? Reread the
Walker family situation to determine the criteria and add them to the grid. Remember the price of the house
is a constraint and should not be listed as a criterion.
+
• How does each alternative measure up with the criteria? Looking at the house charts again, determine which
criteria are met by each house. Place a + or - in each box for the houses.
criteria
+
The price of the house is considered a constraint, not a criterion. Criteria are goals people would like to meet,
but they are not restricted by them. Constraints are absolute restrictions on choices (alternatives). The
Walker family cannot choose a house with a price greater than $100,000.
+
Jones Family
The Jones family has four members: Dad, James
(2), Ruth (6), and Cindy (9). Mr. Jones prefers
living in the city. He wants a home with at least
three bedrooms, a two-car garage, and an
elementary school within walking distance. Mr.
Jones would also like a garbage disposal. He prefers a newer house (less than 11 years old). The Joneses
are considering several houses. Decide which one the family should buy. Do not spend more than
$100,000.
Pratter Family
The Pratter family has three members: Mom, Jane (15), and Debbie (16). Mrs. Pratter works each day
until 6:00 p.m. Jane and Debbie are in the school band and usually have practice until 4:00 p.m. It would
be nice if their new home were within walking distance of the high school. They would like a house with
three bedrooms or more and a fenced yard for their dog, Sam. Mrs. Pratter would also like carpeting, a
garbage disposal, and draperies. The Pratters are considering several houses. Decide which one the family
should buy. Do not spend more than $100,000.
Harris Family
The Harris family has five members: Mom, Dad, Jason (13), Linda (14), and Austin (17). The family
would like a house with central air-conditioning in the city. They would like four bedrooms, a two-car
garage, and a junior high school within walking distance. Mr. Harris would like a basement where he
could set up a darkroom. The Harrises are considering several houses. Decide which one the family
should buy. Do not spend more than $100,000.