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A solution to decision making under uncertainty.
Author(s):
1. Xiaogang Wu: Department of Business, Zhejiang Gongshang University, Hangzhou 310018, Zhejiang, China
2. Rongwei Du: Department of Business, Zhejiang Gongshang University, Hangzhou 310018, Zhejiang, China
Abstract:
Decision-making under uncertainty is the problem with the least known conditions, and also the most difficult problem to find the optimal solution. A. Wald and his contemporary V. Nouma first associate the decision theory with the game theory in the way of regarding the statistical decision as the two-person zero-sum game processed by the statistician and nature. A. Wald proves that we should choose the so called Max-min strategy in decision making. Based on the analyses of A. Wald matrix game and five classical rules of uncertain decision-making, this paper agrees that the max-min criterion is the relative scientific solution, and puts forward the general method of solving uncertain decision-making.
Page(s): 320-324
DOI: DOI not available
Published: Journal: Journal of Theoretical and Applied Information Technology, Volume: 45, Issue: 1, Year: 2012
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