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decision theory Decision theory or the theory of rational choice is a branch of probability theory, probability, economics, and analytic philosophy that uses expected utility and probabilities, probability to model how individuals would behave Rationality, ratio ...
, a decision rule is said to dominate another if the performance of the former is sometimes better, and never worse, than that of the latter. Formally, let \delta_1 and \delta_2 be two decision rules, and let R(\theta, \delta) be the
risk In simple terms, risk is the possibility of something bad happening. Risk involves uncertainty about the effects/implications of an activity with respect to something that humans value (such as health, well-being, wealth, property or the environ ...
of rule \delta for parameter \theta. The decision rule \delta_1 is said to dominate the rule \delta_2 if R(\theta,\delta_1)\le R(\theta,\delta_2) for all \theta, and the inequality is strict for some \theta.. This defines a partial order on decision rules; the maximal elements with respect to this order are called '' admissible decision rules.''


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{{statistics-stub Decision theory