"Decision analysis (DA) is the discipline comprising the philosophy, methodology, and professional practice necessary to address important decisions in a formal manner."
A series of quantitative techniques used to evaluate and prioritize alternatives when faced with uncertain or complex situations.
Decision Analysis: A systematic approach to making decisions that involves identifying and evaluating alternatives, assessing risks, and choosing the best course of action.
Probability Theory: The study of the likelihood of events occurring, based on mathematical principles.
Statistics: The science of collecting, analyzing, and interpreting data, to make informed decisions.
Game Theory: The study of the strategic interactions between agents, in order to find optimal solutions for different scenarios.
Optimization: The process of finding the best solution for a problem, by maximizing or minimizing an objective function.
Utility Theory: The study of how individuals make decisions, based on a set of preferences and values.
Risk Analysis: The process of identifying, assessing, and managing risks, to minimize the negative impact on an organization.
Decision Trees: A visual representation of decision making, by mapping out all possible outcomes and their probabilities.
Sensitivity Analysis: The study of how changes in one variable can affect the overall outcome of a decision.
Linear Programming: A method of optimizing solutions, based on a set of linear constraints and objective functions.
Nonlinear Programming: A method of solving problems that involve non-linear constraints and objective functions.
Monte Carlo Simulation: A technique used to simulate different scenarios, by generating random variables and observing their effects on a model.
Markov Decision Processes: A framework used to model decision making in complex systems, based on the principles of probability and game theory.
Heuristics: A set of rules or techniques used to solve problems quickly, without necessarily finding an optimal solution.
Decision Trees: This is a graphical representation of decision-making processes that can help visualize different outcomes and their probabilities.
Game Theory: This type of analysis involves the study of strategic actions taken by different parties to maximize their gains.
Linear Programming: This is a mathematical optimization technique that can be used to maximize or minimize a linear function subject to certain constraints.
Markov Decision Processes: This kind of analysis involves the use of probabilistic models to represent decision-making processes.
Monte Carlo Simulation: This is a method of simulating various possible outcomes of a decision-making process by randomly selecting values for different variables.
Multi-Criteria Decision Analysis: This kind of analysis is used to evaluate different options based on multiple criteria or factors.
Portfolio Optimization: This kind of analysis involves the selection of a portfolio of investments or assets that maximizes the expected return while minimizing the risk.
Sensitivity Analysis: This type of analysis is used to understand how changes in variables or assumptions can impact the outcomes of a decision-making process.
Stochastic Processes: This kind of analysis involves the study of random processes and their impact on decision-making.
Swarm Intelligence: This is a collective decision-making process in which a group of individuals or agents work together to find the best solution to a problem.
"Decision analysis includes many procedures, methods, and tools for identifying, clearly representing, and formally assessing important aspects of a decision..."
"...for prescribing a recommended course of action by applying the maximum expected-utility axiom to a well-formed representation of the decision."
"...and for translating the formal representation of a decision and its corresponding recommendation into insight for the decision maker, and other corporate and non-corporate stakeholders."
"Decision analysis addresses important decisions in a formal manner."
"Decision analysis assesses important aspects of a decision."
"Decision analysis prescribes a recommended course of action."
"Decision analysis applies the maximum expected-utility axiom to a well-formed representation of the decision."
"...insight for the decision maker, and other corporate and non-corporate stakeholders."
"Decision analysis requires a philosophy, methodology, and professional practice."
"Decision analysis represents decisions in a clear manner."
"Decision analysis applies the maximum expected-utility axiom."
"The goal is to address important decisions in a formal manner."
"Decision analysis recommends a course of action."
"Decision analysis focuses on assessing important aspects of a decision."
"Decision analysis translates the formal representation of a decision... into insight."
"Decision analysis prescribes a recommended course of action."
"The decision maker and other corporate and non-corporate stakeholders benefit from decision analysis insights."
"Decision analysis includes many procedures, methods, and tools."
"Decision analysis aims to identify important aspects of a decision."