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 important aspects of a decision, for prescribing a 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
stakeholders.