Decision Theory

This book presents an overview of the fundamental concepts and outcomes of rational decision-making under uncertainty, highlighting the implications for statistical practice. An overview of the science of decision-making includes a number of methodological tools related to decision-making, such as: analysis of decision-making problems, the decision-making process, stages of the decision-making process, models and modeling, the choice of methods and techniques. The methods further include the criterion of expectations and usefulness, then the concept of factors – external, internal, subjective, objective decision-making factors, as well as formal and informal decision-making factors.