In decision theory, a decision rule is a function which maps an observation to an appropriate action. Decision rules play an important role in the theory of statistics and economics, and are closely related to the concept of a strategy in game theory.
In order to evaluate the usefulness of a decision rule, it is necessary to have a loss function detailing the outcome of each action under different states.
Read more about Decision Rule: Formal Definition, Examples of Decision Rules, See Also
Famous quotes containing the words decision and/or rule:
“How could a man be satisfied with a decision between such alternatives and under such circumstances? No more than he can be satisfied with his hat, which he’s chosen from among such shapes as the resources of the age offer him, wearing it at best with a resignation which is chiefly supported by comparison.”
—George Eliot [Mary Ann (or Marian)
“This at least should be a rule through the letter-writing world: that no angry letter be posted till four-and-twenty hours will have elapsed since it was written.”
—Anthony Trollope (1815–1882)