Category

Optimal decisions

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in mathematical optimization, a function (to be minimized) representing the cost of each outcome

Markov decision process

mathematical model for sequential decision making under uncertainty

expected utility hypothesis

hypothesis that the subjective value of a gamble is the statistical expectation of one’s valuations (which may differ from dollar values) of the gamble’s outcomes

secretary problem

mathematical problem

Kelly criterion

formula for bet sizing that maximise expected value

Monte Carlo tree search

heuristic search algorithm based on random sampling

specific type of “random time”: a random variable whose value is interpreted as the time at which a given stochastic process exhibits a certain behavior of interest

cost–utility analysis

form of financial analysis used to guide procurement decisions

feasible region

set of all possible points of an optimization problem that satisfy the problem's constraints

utility maximization problem

the fundamental optimization problem that economic agents face

response surface methodology

sequential experimentation for improvement and for finding an optimal response

Expenditure minimization problem

in microeconomics

optimal decision

decision that leads to the best outcome in decision theory

economics model which includes a regret term in the utility function

method of computing optimal strategies for last-success problems