decision theory


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decision theory

[di′sizh·ən ‚the·ə·rē]
(systems engineering)
A broad spectrum of concepts and techniques which have been developed to both describe and rationalize the process of decision making, that is, making a choice among several possible alternatives.

decision theory

(probability)
A branch of statistics concerning strategies for decision making in non-deterministic systems. Decision theory seeks to find strategies that maximise the expected value of a utility function measuring the desirability of possible outcomes.
References in periodicals archive ?
A key difference between our study and much of the literature on establishment mode choice relates to our use of behavioral decision theory (Wiseman and Gomez-Mejia 1998) in arguing for the relationships between equity ownership, compensation structures and choice of establishment mode.
The ranking by PROMETHEE model based on hierarchical clustering algorithm and NSGA II algorithm show that the framework presented in this article is a novel approach in the literature of decision theory and data mining for project portfolio selection and will theoretically enrich this area.
New research from the University of Copenhagen, which has just been published in the journal Metaphilosophy, combines formal philosophy, social psychology, and decision theory to understand and tackle these phenomena.
We suggested that this is due to fact, that target is expected to reappear near the centre of the screen and this supports basic principles of the Bayesian decision theory which defines how new information should be combined with prior beliefs and how information from different modalities should be integrated [5].
This study shows that ambiguity and vagueness in accounting and auditing (hereafter accounting) involves different sources (ambiguous probability judgments, vague states of nature, imprecise payoffs, and varying degrees of precision) and that decision theory (e.
In the standard rendition of aggregative consequentialism, the formal components have the following default settings: the domain rule is that we should aggregate uniformly over everything (the entire cosmos); the aggregation rule is that the total of value of the domain is the cardinal sum of the value of its parts; and the selection rule is the one given by standard decision theory applied to ethics: you ought to perform one of those available acts for which the expected value of the world is maximal.
The book is aimed at advanced undergraduates, graduate students, and statisticians and focuses on evidence rather than decision theory.
This is the first time the internationally renowned conference - entitled International Conference on the Foundations and Applications of Utility, Risk and Decision Theory (FUR) - has taken place in the UK in its 28-year history.
W6: Interactive Decision Theory and Game Theory Contact: Piotr Gmytrasiewicz, University of Illinois at Chicago (piotr@cs.
The book is organised into nineteen chapters ranging from linear programming, Sequencing, Inventory management, Queuing theory, Replacement theory, PERT-CPM, Decision Theory to Markov Chains, Dynamic Programming, Simulation to Forecasting.
Relying on Bayesian Decision Theory, an employer's wage decision is assumed to be based on a measurement of individual ability combined with the employer's prior knowledge of the group mean ability, with both of these measures weighted based on the reliability of the measure of the individual's ability.
If we can quantify the uncertainties and know the risks, we can base decisions on decision theory concepts.

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