A theoretical technique utilizing a group of related constructs to describe or prescribe how individuals or groups of people choose a course of action when faced with several alternatives and a variable amount of knowledge about the determinants of the outcomes of those alternatives.
The way managers make decisions based on logic and math. It has three classes of decisions made under certainty, decisions under conflict, and decisions under uncertainty. Refer to game theory.
A branch of statistics concerning strategies fordecision making in non-deterministic systems. Decisiontheory seeks to find strategies that maximise the expectedvalue of a utility function measuring the desirability ofpossible outcomes.