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:
“A good decision is based on knowledge and not on numbers.”
—Plato (c. 427–347 B.C.)
“Good taste is either that which agrees with my taste or that which subjects itself to the rule of reason. From this we can see how useful it is to employ reason in seeking out the laws of taste.”
—G.C. (Georg Christoph)