Decision theory and the management of quality



Typically, we face the prospect of having to make a decision when some of the information needed to reach that decision is not available. Statistical decision theory deals with such problems. It defines rational procedures for reaching with such decisions in a consistent manner, and based on something more than intuition and personal subjective judgment (which is important when quality is intangible and hardly measurable). The modern theory of decision making under uncertainty has evolved in four phases, starting at the beginning of the 19th century. In the beginning, it was concerned with collecting data to provide a foundation for experimentation and sampling theory. These were the times when surveys and the counting of populations of all sorts began. The theories of quality inspection, statistical production and process controls (SPC/SQC) are a direct application of these statistical theories.


Posterior Distribution Decision Theory Conditional Consequence Prob Ability Bayesian Decision 
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Copyright information

© Charles S. Tapiero 1996

Authors and Affiliations

  1. 1.Ecole Supérieure des Sciences Economiques et CommercialesParisFrance

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