Business Statistics

732 Business Statistics

describes an analytical and systematic approach to decision making when the decision maker has several feasible and viable decision

alternatives. It primarily focuses on elements of decision analysis; decision making in different situations as decision making under

uncertainty and decision making under risk; the concept of Bayesian analysis: posterior analysis, and the use of decision trees in mak-

ing decisions.

19.1  INTRODUCTION

We have discussed that the procedure of hypothesis testing to draw an inference about the population

parameter is based on sample statistic. Hypothesis testing is also a method of arriving ...