Decision problem

The basic decision problem is as follows: Given a set of r alternative actions A = {a ₁,..., a _r}, a set of q states of nature S = {s ₁,..., s _q}, a set of rq outcomes O = {o ₁, ..., o _rq}, a corresponding set of rq payoffs P = { p ₁,..., p _rq}, and a decision criterion to be optimized, f (a _j), where f is a real-valued function de-fined on A, choose an alternative action a _j that optimizes the decision criterion f (a _j). Decision maker; Mathematical model; Multi-criteria decision making.