The document discusses problem solving and decision making. It defines problem solving as the active effort to find a solution to achieve a goal that is not readily attainable. There are four components of a problem: the initial state, goal state, set of rules, and obstacles. Problems can be well-defined or ill-defined. Decision making involves choosing among alternatives while considering costs, benefits, and consequences. Major theories of decision making discussed include expected utility theory and prospect theory. The document also outlines different perspectives and general methods for problem solving, including algorithms, heuristics like representative heuristics and anchoring/adjustment heuristics.