The Development And Application Of Decision Theory Analysis

Abstract

Nearly everything a person does, every action taken, is the result of making a decision. With the exception of a few physiological actions, such as breathing, every action involves a decision, even though some are very minor decisions because the consequences are not too important. For these minor decisions, intuition instead of conscious thought is used. Because of the importance of decision-making, both in everyday situations and in complex business matters, the theory of decision-making has been developed extensively in recent years. It has often been said that the key to understanding any decision-making process is to discover the ways in which the decision-maker simplifies the complex ideas into workable conceptions of the decision problem. And this is just what Decision Theory does. <br />