Decision and Risk Analysis.

Catalog description

Semester course; 1 lecture hour. 1 credit. Presents a formal methodology for prescriptive decision-making under risk and uncertainty. Decision analysis applies to hard problems involving sequential decisions, major uncertainties, significant outcomes and complex values. The course includes building and solving influence diagrams and decision trees; modeling uncertainty with subjective probabilities; the value of information; and modeling risk preferences with utility functions. Decision and risk analysis applications in business and government are considered.