Chapter 19
Statistical Decision Theory
In any moment of decision the best thing you can do is the right thing, the next best thing is the wrong thing, and the worst thing you can do is nothing.
– Theodore Roosevelt
LEARNING OBJECTIVES
Upon completion of this chapter, you will be able to:
- Understand the elements of decision analysis
- Understand decision making under uncertainty and decision making under risk
- Understand the concept of Bayesian analysis: posterior analysis
- Understand the concept of a graphic model of a decision process, that is, decision tree
STATISTICS IN ACTION: GAIL (INDIA) LTD
The demand for natural gas has increased worldwide due to the increase in energy requirements and the emphasis on environmental protection. ...
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