finals

• It is a process of logical and quantitative analysis of various factors involved in a problem of decision making and it helps us in making the best possible decision.

  Decision Theory
•  a course of action or strategy that may be chosen by the decision-maker. 

  Alternative
• an occurrence or a situation over which the decision maker has little or no control.

  State of Nature
• the benefit which accrues from a given combination of decision alternative and state of nature.

  Payoff
• which shows the expected payoffs for each alternative under the various possible states of nature.

  payoff table