the Essentials of Decision Theory

Decision theory is the study of how individuals or organizations make choices when faced with different options and uncertain outcomes. It involves identifying possible actions, predicting their potential results, and evaluating the risks and benefits associated with each. The goal is to select the option that best aligns with your goals or maximizes your desired results, often considering factors like chance, preferences, and values. In essence, it helps make informed, rational choices in complex situations where outcomes are not guaranteed.