Lecture Statistical techniques in business and economics: Chapter 20 - Lind, Marchal, Wathen
Lecture Statistical techniques in business and economics: Chapter 20 - Lind, Marchal, Wathen
In this chapter, you learned to: Define the terms state of nature, event, decision alternatives, payoff, and utility; organize information in a payoff table or a decision tree; compute opportunity loss and utility function; find an optimal decision alternative based on a given decision criterion; assess the expected value of additional information.