decision theory

noun, Statistics.
1.
the theory of making decisions based on assigning probabilities to various factors and assigning numerical consequences to the outcome.
Origin
1960-65
Examples from the web for decision theory
  • Conventional decision theory cannot explain why humans make paradoxical choices.
  • For certain other situations, decision theory is an appropriate tool.
British Dictionary definitions for decision theory

decision theory

noun
1.
(statistics) the study of strategies for decision-making under conditions of uncertainty in such a way as to maximize the expected utility See also game theory
decision theory in Technology

probability
A branch of statistics concerning strategies for decision making in non-deterministic systems. Decision theory seeks to find strategies that maximise the expected value of a utility function measuring the desirability of possible outcomes.
(1995-09-22)