Abstract
Decision problems may be classified in different ways. They may be either static or dynamic. In the static situation, decisions have to be made only once, whereas a dynamic problem involves multiple decisions over time. Decision problems may also be either deterministic or stochastic. In a deterministic problem, uncertainty is assumed to be insignificant and is ignored, whereas in a stochastic problem, the effect of uncertainty is included in the modelling, and this is done through the presence of random variables.
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© 2014 Springer-Verlag London
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Murthy, D., Jack, N. (2014). Introduction to Stochastic Optimisation and Game Theory. In: Extended Warranties, Maintenance Service and Lease Contracts. Springer Series in Reliability Engineering. Springer, London. https://doi.org/10.1007/978-1-4471-6440-1_4
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DOI: https://doi.org/10.1007/978-1-4471-6440-1_4
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