O'Reilly logo

Probabilistic Methods for Financial and Marketing Informatics by Xia Jiang, Richard E. Neapolitan

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Chapter 5

Decision Analysis Fundamentals

image

In general, the information obtained by doing inference in a Bayesian network can be used to arrive at a decision, even though the Bayesian network itself does not recommend a decision. In this chapter, we extend the structure of a Bayesian network so that the network actually does recommend a decision. Such a network is called an influence diagram. Section 5.1 introduces decision trees, which are mathematically equivalent to influence diagrams, but which have difficulty representing large instances because their size grows exponentially with the number of variables. In Section 5.2 we discuss influence ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required