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:
“Our decision about energy will test the character of the American people and the ability of the President and the Congress to govern this nation. This difficult effort will be the “moral equivalent of war,” except that we will be uniting our efforts to build and not to destroy.”
—Jimmy Carter (James Earl Carter, Jr.)
“The world is filled with the proverbs and acts and winkings of a base prudence, which is a devotion to matter, as if we possessed no other faculties than the palate, the nose, the touch, the eye and ear; a prudence which adores the Rule of Three, which never subscribes, which never gives, which seldom lends, and asks but one question of any project,—Will it bake bread?”
—Ralph Waldo Emerson (1803–1882)