decision theory

American  

noun

Statistics.

1. the theory of making decisions based on assigning probabilities to various factors and assigning numerical consequences to the outcome.

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decision theory British  

noun

1. statistics the study of strategies for decision-making under conditions of uncertainty in such a way as to maximize the expected utility See also game theory

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Etymology

Origin of decision theory

First recorded in 1960–65

Example Sentences

Most decisions are more complex than this, but the promise of decision theory is that there’s a formula for everything, from launching a raid in Abbottabad to digging an oil well in the North Sea.

From The New Yorker • Jan. 14, 2019

According to decision theory, what matters is whether you made a good decision given your information at the time, and not how it turned out.

From Slate • Jun. 29, 2018

There will be seminars on synthetic biology, decision theory and AI.

From The Guardian • Aug. 30, 2014

"When sites come across as strange and frivolous, people let their guard down," says Leslie John, a doctoral student in behavioral decision theory at Carnegie Mellon University, and lead author of the study.

From Time • Oct. 1, 2010

While intellectually stimulating, decision theory, econometrics, and similar courses left me feeling adrift.

From "Just Mercy" by Bryan Stevenson