Decision theory

/dɪsˈɪʒən θˈiəɹi/

/dᵻsˈɪʒən θˈiəɹi/

Decision theory

(mathematics) ‌the study about making the best choice out of available alternatives while considering all the risks and benefits

Examples

1. Particularly decision theory is done that way now.

2. But sometimes just not making a decision-- decision theory shows that if you have about 70% of the information, make a decision.

3. And the point about Bayesian decision theory is it gives you the mathematics of the optimal way to combine your prior knowledge with your sensory evidence to generate new beliefs.

4. The obedience to the Von Neumann-Morgenstern decision theory suggests that one ought to do the things that you expect to have the best outcomes based on some value function.