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DECISION THEORY
People constantly make decisions in their private lives as well as in their work. Some decisions are qualitative in terms of their implications and significance, like, If I do not have coffee in the morning, I will feel flat throught the day and if I have, I will feel fresh. Other decisions involve elements which are quantifiable like, If I work on the machine for 6 hours per day the production would be 2,500 units and if I work for 8 hours per day the production would be 3,500 units.
Decision making environments in which consequences of decisions are quantifiable.
Our discussion of decision theory is based on the following assumptions:
Decision making can be of three categories:
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