Formal Mathematical Description
Each decision in a set of available decision options will lead to an outcome . All possible outcomes form the set . Assigning a utility to every outcome, we can define the utility of a particular decision as
We can then define an optimal decision as one that maximizes :
Solving the problem can thus be divided into three steps:
- predicting the outcome for every decision
- assigning a utility to every outcome
- finding the decision that maximizes
Read more about this topic: Optimal Decision
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