What is Risk and Decision Analysis?

–          The commonly used classification scheme for decision analysis divides situations according to whether a decision is made by:

(i)                 An individual

(ii)               A group

–          Another classification is according to whether a decision is made under conditions of :

(i)                 Certainty

(ii)               Risk

(iii)             Uncertainty

(iv)             Unknowingness

–          The distinction between an individual and a group is based on the compatibility of the objectives or interests of the participants in the decision making situation.  If all the participants share the same objectives, then it is as though the decision were going to be made by one individual.  But if conflict exists between the participants, then the analysis is groupwise.