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Decision Analysis

  • H. A. Eiselt
  • Carl-Louis Sandblom
Chapter
Part of the Springer Texts in Business and Economics book series (STBE)

Abstract

Everywhere in the world, at each moment, millions of people make their own decentralized decisions: when to get up in the morning, what tie to wear, what to eat for lunch or dinner, what to do in the evening (go to the theater or watch television), where to vacation, and many more. Similarly, firms will decide which mode of transportation to use when routing their products to customers, where to locate regional distribution centers, what new product lines to develop, etc. This chapter will first introduce the main elements of decision analysis, and then offer some visualizations of decision analysis problem. This is followed by a discussion of some simple decision rules, sensitivity analyses, and a discussion of the value of information. The chapter wraps up the discussion by some thoughts on utility theory.

Keywords

Decision Maker Posterior Probability Expected Payoff Perfect Information Payoff Matrix 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Supplementary material

Copyright information

© Springer-Verlag Berlin Heidelberg 2012

Authors and Affiliations

  1. 1.Faculty of Business AdministrationUniversity of New BrunswickFrederictonCanada
  2. 2.Deptartment of Industrial EngineeringDalhousie UniversityHalifaxCanada

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