decision theory

The systematic analysis of strategies for the optimal selection of alternative courses of action. Decision-making in conditions of uncertainty is fundamental to the management of organizations, and decision theory has developed a sophisticated range of methodologies - see, for example, *critical path analysis, *decision trees, and *discounted cash flow analysis. Compare *game theory.

Auditor's dictionary. 2014.

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  • Decision theory — in economics, psychology, philosophy, mathematics, and statistics is concerned with identifying the values, uncertainties and other issues relevant in a given decision, its rationality, and the resulting optimal decision. It is closely related to …   Wikipedia

  • decision theory — or decision analysis Gen Mgt a body of knowledge that attempts to describe, analyze, and model the process of decision making and the factors influencing it. Decision theory encompasses both formal mathematical and statistical approaches to… …   The ultimate business dictionary

  • decision theory — Statistics. the theory of making decisions based on assigning probabilities to various factors and assigning numerical consequences to the outcome. [1960 65] * * * In statistics and related subfields of philosophy, the theory and method of… …   Universalium

  • Decision Theory — An interdisciplinary approach to determine how decisions are made given unknown variables and an uncertain decision environment framework. Decision theory bring together psychology, statistics, philosophy and mathematics to analyze the decision… …   Investment dictionary

  • decision theory — noun : a branch of statistical theory that attempts to quantify the process of making choices between alternatives * * * deˈcision theory 7 [decision theory] noun uncountable (mathematics …   Useful english dictionary

  • 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

  • decision theory — sprendimų teorija statusas T sritis automatika atitikmenys: angl. decision theory vok. Entscheidungstheorie, f rus. теория решений, f pranc. théorie des décisions, f …   Automatikos terminų žodynas

  • 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

  • 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

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