decision theory

decision theory
The theory of choices made when each option is associated with a risk, or expectation of gain or loss, where the expectation is a function of the probability of some outcome and the total gain or loss involved. See dominance, expected utility.

Philosophy dictionary. . 2011.

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  • decision theory — /dɪ sɪʒ(ə)n ˌθɪəri/ noun the mathematical methods for weighing the various factors in making decisions ● In practice it is difficult to apply decision theory to our planning. ● Students study decision theory to help them suggest strategies in… …   Marketing dictionary in english

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  • decision theory — noun the mathematical study of strategies for optimal decision making between options involving different risks or expectations of gain or loss depending on the outcome. Compare with game theory …   English new terms dictionary

  • decision theory — noun Date: 1961 a branch of statistical theory concerned with quantifying the process of making choices between alternatives …   New Collegiate Dictionary

  • Info-gap decision theory — is a non probabilistic decision theory that seeks to optimize robustness to failure – or opportuneness for windfall – under severe uncertainty,[1][2] in particular applying sensitivity analysis of the stability radius type[3] to perturbations in… …   Wikipedia

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