1. An over view of decision making models
Authors : Avinash Shrirangrao Jagtap
Pages : 13-17
Keywords : Decision Theory, Decision making model, rational model, intuitional model, operational risk model, recognition primed decision making, satisfice. Abstract :
Decision theory is one of the basic statistical methods used in everyday life. On one side, decision theory can be related to the theory of estimation if the state of nature is treated as a parameter. On the other side, it can be related to game theory if the state of nature is treated as the choice made by nature as an adversary of the decision maker. In any case, decision theory is the backbone of management and statistical decision theory helps managers take optimal decision under uncertainty. This paper discusses the development of decision theory from deterministic rule-based decision-making to datadriven or evidence-based decision making. Some basic concepts and definitions are given here for a better understanding of the subject and its development.