Decision Theory in Operations Research

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Description: Decision making can be defined as a process of selecting the best strategy from various alternatives. Decision making is a rational analysis of the problem which helps the management to reach some decision. In other words, Decision making is a process which results in the selection from a set of alternatives (course of action) that course of action which is considered to meet the objectives of the decision making more satisfactorily than others. Decision theory refers to the process which is concerned with identifying the values, uncertainties and other issues relevant in a given decision, its rationality, and the resulting optimal decision. It is concerned with identifying the best decision to take, assuming an ideal decision maker who is fully informed, able to compute with perfect accuracy, and fully rational. The practical application of this prescriptive approach (how people actually make decisions) is called decision analysis, and aimed at finding tools and methodologies to help people make better decisions. In this course , the students will learn :Decision Making Under RiskEMV, EOL, EVPIDecision making Under UncertaintyMaximin, Maximax, Baye's/Laplace, Hurwitz Coefficient, Minimax RegretDecision TreeDecision making can be classified according to the following: 1. Decision making under risk -Decision under probabilistic uncertainty issues are those in which one of several outcomes can result from a given action depending on the state of nature, and these states occur with known probabilities. There are outcome uncertainties, and the probabilities associated with these are known precisely. Multiple possible outcomes of each alternative can be identified, and the probability of occurrence can be attached to each. . In DECISION UNDER risk each alternative will have one of several possible consequences, and the probability of occurrence for each consequence is known. Therefore, each alternative is associate
Category: Teaching & Academics > Other Teaching & Academics > Operations Research
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Price: 24.99
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