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:
“Every decision is liberating, even if it leads to disaster. Otherwise, why do so many people walk upright and with open eyes into their misfortune?”
—Elias Canetti (b. 1905)
“Do I dare set forth here the most important, the most useful rule of all education? it is not to save time, but to squander it.”
—Jean-Jacques Rousseau (1712–1778)