Decision Making. Introduction. Basic concepts of Acts, Events and Outcomes and Payoffs Criteria for Decision Making Backward Induction Value of Information Summary. Basic Concepts in This chapter. Acts are decision maker’s choices.
Every event at an event fork has a probability of ocurrance. The events are mutually
exclusive. The sum of all probabilities at any event fork is 1.
It may be worthwhile to map the structure Naturally, acts stem from act fork that signify the point at which maker’s choice take place.