Meaning of decision theory | Babel Free

Definitions

A branch of applied probability theory concerned with the theory of decision making based on models describing probabilities, actions, constraints, and preferences.

Examples

“Info-gap decision theory is based on quantitative models and provides numerical decision-support assessments.”

“Decision theory gives a concise framework for making decisions based on models. Its components are a state space forming the range of a set of variables, alternatives or potential actions, and constraints on the decision space a set of consequences of actions, and a preference functional encoding and optimality criterion, involving the costs and value of extra information.”

CEFR level