What is decision analysis?

Decision analysis is a systematic, quantitative, and visual approach to making complex business or policy decisions. It involves structuring decision problems, identifying alternatives, assessing risks and uncertainties, and evaluating outcomes based on preferences or objectives. Decision analysis uses tools like decision trees, probability models, and cost-benefit analysis to help decision-makers choose the best course of action. This method is widely used in fields such as business, healthcare, engineering, and government for risk management and strategy development.