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Decision making with decision event graphs

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Cowell, Robert G., Thwaites, Peter and Smith, J. Q. (2010) Decision making with decision event graphs. Working Paper. Coventry: University of Warwick. Centre for Research in Statistical Methodology. Working papers, Vol.2010 (No.15).

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Abstract

We introduce a new modelling representation, the Decision Event Graph (DEG), for asymmetric
multistage decision problems. The DEG explicitly encodes conditional independences
and has additional significant advantages over other representations of asymmetric decision
problems. The colouring of edges makes it possible to identify conditional independences on
decision trees, and these coloured trees serve as a basis for the construction of the DEG.
We provide an efficient backward-induction algorithm for finding optimal decision rules on
DEGs, and work through an example showing the efficacy of these graphs. Simplifications of
the topology of a DEG admit analogues to the sufficiency principle and barren node deletion
steps used with influence diagrams.

Item Type: Working or Discussion Paper (Working Paper)
Subjects: Q Science > QA Mathematics
Divisions: Faculty of Science > Statistics
Library of Congress Subject Headings (LCSH): Statistical decision, Decision trees
Series Name: Working papers
Publisher: University of Warwick. Centre for Research in Statistical Methodology
Place of Publication: Coventry
Official Date: 2010
Dates:
DateEvent
2010Published
Volume: Vol.2010
Number: No.15
Number of Pages: 29
Status: Not Peer Reviewed
Access rights to Published version: Open Access
Funder: Engineering and Physical Sciences Research Council (EPSRC)
Grant number: EP/F036752/1 (EPSRC)

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