Decision model

Decision model
This article is about the decision model. For other uses, see Appraisal (disambiguation).

A decision method is an axiomatic system that contains at least one action axiom.

Formulation is the first and often most challenging stage in using formal decision methods (and in decision analysis in particular). The objective of the formulation stage is to develop a formal model of the given decision.

Evaluation is the second and most algorithmic stage in using formal decision methods. The objective of the evaluation stage is to produce a formal recommendation (and its associated sensitivities) from a formal model of the decision situation.

Appraisal is the third and last stage in using formal decision methods. The objective of the appraisal stage is for the decision maker to develop insight into the decision and determine a clear course of action. Much of the insight developed in this stage results from exploring the implications of the formal decision model developed during the formulation stage (i.e., from mining the model). Central to these implications is the formal recommendation for action calculated during the evaluation stage. Other implications include various forms of sensitivity of the recommendation to selected variables in the model. Additional insight is obtained by exposing key aspects of the reasoning that led to the formal decision model (i.e., by justifying the model). Possible actions following the appraisal stage include implementing the recommended course of action, revising the formal model and reevaluating it, or abandoning the analysis and doing something else.

Justifying a decision model is the action of exploring and explaining the reasoning that led to the formulation of a particular decision model.

Mining a decision model is the action of extracting information (e.g., sensitivity, value of information, and value of control) from a given decision model.

See also



Wikimedia Foundation. 2010.

Игры ⚽ Нужен реферат?

Look at other dictionaries:

  • decision model — A model that simulates the elements or variables inherent in a business decision, together with their relationships to each other and the constraints under which they operate; the purpose of the model is to enable a solution to be arrived at in… …   Accounting dictionary

  • decision model — A model that simulates the elements or variables inherent in a business decision, together with their relationships to each other and the constraints under which they operate; the purpose of the model is to enable a solution to be arrived at in… …   Big dictionary of business and management

  • Decision engineering — framework Decision Engineering is a framework that unifies a number of best practices for organizational decision making. It is based on the recognition that, in many organizations, decision making could be improved if a more structured approach… …   Wikipedia

  • Decision analysis — (DA) is the discipline comprising the philosophy, theory, methodology, and professional practice necessary to address important decisions in a formal manner. Decision analysis includes many procedures, methods, and tools for identifying, clearly… …   Wikipedia

  • Decision making — For Decision making in groups, see Group decision making. Sample flowchart representing the decision process to add a new article to Wikipedia. Decision making can be regarded as the mental processes (cognitive process) resulting in the selection …   Wikipedia

  • Decision analysis cycle — The decision analysis (DA) cycle is the top level procedure for carrying out a decision analysis. The traditional cycle consists of four phases: basis development determinisitic sensitivity analysis probabilistic analysis basis appraisal. The… …   Wikipedia

  • Decision field theory — (DFT), is a dynamic cognitive approach to human decision making. It is a cognitive model that describes how people make decisions rather than a rational model that prescribes what people should do. It is also a dynamic model of decision making… …   Wikipedia

  • Decision theory — in economics, psychology, philosophy, mathematics, and statistics is concerned with identifying the values, uncertainties and other issues relevant in a given decision, its rationality, and the resulting optimal decision. It is closely related to …   Wikipedia

  • Model European Union — Type NGO Simulation Purpose/focus Education Location Strasbourg, France …   Wikipedia

  • Model Checking — Le Model Checking désigne une famille de techniques de vérification automatique des systèmes dynamiques (souvent d origine informatique ou électronique). Il s agit de vérifier algorithmiquement si un modèle donné, le système lui même ou une… …   Wikipédia en Français

Share the article and excerpts

Direct link
… Do a right-click on the link above
and select “Copy Link”