Course No:           Act 661

Course Name:      Decision Theory - 1

Course Description:      

The nature and concept of loss functions, parameters, decisions and sample spaces. Risk and average loss. Admissibility and the class of admissible decision

Minimax principles and its application to simple decision problems linear and quadratic losses and their uses in problems of estimation and testing type. Asymptotically minimax procedure.

Course Review:

The course takes into account the fact that managers are constantly making decisions that involve risk. This course investigates how managers confront risk, deal with difficult decisions and prepare for contingencies. The aim of this course is to introduce students with the nature and concept of loss functions, parameters, decisions and sample spaces, risk and average loss, admissibility and class of admissible decision, minimax principles and its application to decision problems linear and quadratic losses and their uses in problems of estimation and testing type, asymptotically mimimax procedure.