ABSTRACT
This chapter presents decision-making a central to engineering work and an introduction to mathematical decision theory. In many decision-making situations the aim is to make a single decision using knowledge of the possible outcomes and their probability. In engineering decision-making, additional information may be acquired in various ways, for example through laboratory testing, pilot studies, theoretical analysis, field trials, or engaging a research agency. Decisions in a competitive environment are particularly relevant to engineers and some of the basic concepts of game theory are also outlined to provide an introduction to the fascinating area of human behaviour. A decision involves choosing between a number of alternate courses of action where the decision-maker is attempting to maximise some measure of satisfaction. Decision-making comes into many aspects of an engineer's work, and it is important to appreciate, firstly, that there are many different types of decisions that need to be made and, secondly, that there are methods suitable for each type.
