620-262 Decision Making

620-261.

This subject introduces the essential features of decision-making situations encountered in operations research investigations. It develops a number of basic mathematical approaches to such situations and the techniques used to solve decision-making problems represented by these approaches. The theoretical foundations of these techniques are also considered. Students should develop the ability to construct formal mathematical models for practical decision-making situations; to solve a number of two-person games, including zero-sum and non-zero-sum games, cooperative and non-cooperative games; to use linear programming and dynamic programming techniques in the solution of a number of multi-objective optimisation problems; and to solve stochastic decision problems using techniques from probabilistic dynamic programming and Markov decision processes. This subject demonstrates the complexity of decision-making situations that may arise from business, economics, management, industry, etc., the extent and limitations of a number of operations research techniques used to solve such problems, and the important role that linear algebra, calculus and probability theory play in the development of these techniques.

Selected topics from game theory, multi-criteria decision-making, Bayesian decision analysis, decision trees and multi-stage decision making, probabilistic dynamic programming and Markov decision processes will be covered.

Up to 24 pages of written assignments due during the semester (10%); a 3-hour written examination in the examination period (90%).