Expected Utility Theory
A theory in economics that models how rational individuals make decisions under risk by maximizing the expected utility of their choices.
186 topics found for
“decision analysis”
System Two
A mode of thinking, derived from Dual Process Theory, that is slow, deliberate, and analytical, requiring more cognitive effort and conscious reasoning.
Scenario Mapping
A method used to create detailed narratives of potential future events to explore and understand possible outcomes and inform decision-making.
Extension Neglect
A cognitive bias where people ignore the relevance of sample size in making judgments, often leading to erroneous conclusions.
Histogram
A graphical representation of the distribution of numerical data, typically showing the frequency of data points in successive intervals.
Quantitative Research
A research method that focuses on collecting and analyzing numerical data to identify patterns, relationships, and trends, often using surveys or experiments.
Category Size Bias
A cognitive bias where people judge the likelihood of an event based on the size of its category rather than its actual probability.
Product Profitability
The financial performance of a product, measured by its ability to generate revenue and profit relative to its costs and expenses.
Business Analytics
The process of using statistical analysis and modeling to explore and interpret business data to make informed decisions.