ABSTRACT
Many problems in decision making involve, in whole or in part, the estimation of an unknown parameter or its localization within a narrow range. In this chapter, we will assume that a random variable X possesses a density function f(x|θ). For the sake of simplicity, we will use the term “density function” in referring to both continuous and discrete random variables, although in the discrete case the term “mass function” would be more descriptive.
