Decision analysis

Decision analysis (DA) is the discipline comprising the philosophy, theory, methodology, and professional practice necessary to address important decisions in a formal manner. Decision analysis includes many procedures, methods, and tools for identifying, clearly representing, and formally assessing the important aspects of a decision situation, for computing the recommended course of action by applying the maximum expected utility action axiom to a well-formed representation of the decision, and for translating the formal representation of a decision and its corresponding recommendation into insight for the decision-maker and other decision participants.

The term decision analysis was coined in 1964 by Ronald A. Howard, who since then, as a professor at Stanford University, has been instrumental in developing much of the practice and professional application of DA.

The Decision Analytic Methods are used to control environmental hazards.