DECISION-ANALYSIS IN ENGINEERING-ECONOMIC MODELING

Decision analysis is a methodology for making decisions with uncertain outcomes and difficult trade-offs. Its purpose is to evaluate the alternatives available to a decision maker and to rank them in light of his information and preferences. The treatment of information and preferences is comprehensive: Decision analysis integrates whatever information is available-whether based on subjective judgment or on any level of modeling or information gathering-together with the consideration of all relevant outcomes (monetary or non-monetary) into the recommendation. © 1990.