Chapter 2: The Decision Matrix Flashcards
Before making a decision, you should decided what are the relevant ___________, __________, and _____________.
acts; states; outcomes
Decision Matrix
Visualizes a formal representation of a decision problem, graphically.
Decision Tree
- More convenient than Decision Matrix
- Visualizes a formal representation of a decision problem, graphically.
Decision Tree Structure
1) Choice Node (square): You decide to go up or down.
2) Chance Node (circle): Acts
– intermittent: states–
3) Possible Outcomes (squares)
Decision trees represent…
sequential decision problems.
If you want to add more to the decision tree, you add to the rightmost __________ (leaves).
boxes
3 Levels of Abstraction w/ Decision Matrices / Trees
1) Decision Problem
2) Formalization of Decision Problem
3) Visualization of the Formalization.
Formalization of Decision Problem
- Made of information about decision being made
- Comprised of information on decision problem’s acts, states, & outcomes.
How should we symbolize decision problems?
We should prefer to symbolize decision problems as Decisions Under Risk (we know the potential outcomes), NOT Decisions Under Ignorance.
Vector
Ordered List of Mathematical Objects
1st Vector: Acts
2nd Vector: States
3rd Vector: Outcomes
State
Part of the world that is not an act or an outcome.
It is _________ a good idea to formalize your decision problem ___________ using ___________.
NOT; without; states
**The __________ of an outcome should be ___________ ____________ of whether or not the __________ actually occurs.
value; casually independent; state
Outcomes of decision problems HAVE to be ____________ from _________ to __________.
ranked; worst; best
Utilities (Value)
(aka Values until Ch. 5)
Numbers that assign comparative evaluations of value.