In this paper, we consider a class of models for two-way matrices with binary entries of 0 and 1. First, we consider Boolean matrix decomposition, conceptualize it as a latent response model (LRM) and, by making use of this conceptualization, generalize it to a larger class of matrix decomposition models. Second, probability matrix decomposition (PMD) models are introduced as a probabilistic version of this larger class of deterministic matrix decomposition models. Third, an algorithm for the computation of the maximum likelihood (ML) and the maximum a posteriori (MAP) estimates of the parameters of PMD models is presented. This algorithm is an EM-algorithm, and is a special case of a more general algorithm that can be used for the whole class of LRMs. And fourth, as an example, a PMD model is applied to data on decision making in psychiatric diagnosis.