ABSTRACT
Decision theory deals with the evaluation and selection of alternate courses of action in the face of uncertainty. The conceptual and mathematical foundations of decision theory lie in probability and statistics. The theory focuses on the problem of a single agent attempting to maximize returns—or equivalently, minimize losses—despite incomplete knowledge of the world. The incomplete awareness of the world may be due to many factors, including cognitive limitations, poor understanding of the properties of the environment, or uncertainty about the future.
