Decision Rules
A decision rule makes a choice using an optimality criterion. Some commonly used criteria are:
- Minimax: Choose the decision rule with the lowest worst loss — that is, minimize the worst-case (maximum possible) loss:
- Invariance: Choose the optimal decision rule which satisfies an invariance requirement.
- Choose the decision rule with the lowest average loss (i.e. minimize the expected value of the loss function):
Read more about this topic: Loss Function
Famous quotes containing the words decision and/or rules:
“A good decision is based on knowledge and not on numbers.”
—Plato (c. 427–347 B.C.)
“The duce of any other rule have I to govern myself by in this affair—and if I had one ... I would twist it and tear it to pieces, and throw it into the fire when I had done—Am I warm? I am, and the cause demands it—a pretty story! is a man to follow rules—or rules to follow him?”
—Laurence Sterne (1713–1768)