Title
Efficiency of influence diagram models with continuous decision variables
Abstract
A measure of efficiency for influence diagram models with continuous decision variables is presented in order to evaluate whether the additional computational complexity required by a more accurate model is justified. The efficiency measure is a multi-objective utility function that considers both the accuracy and complexity of the ID model. Accuracy is determined as the mean squared error between influence diagram decision rules and an analytical solution. Complexity is assessed by tracking the run time required to obtain the solution. The resulting efficiency score considers the preferences of an individual decision maker for accuracy and complexity. Three influence diagram models are compared using the efficiency measurement, and an iterative solution procedure is introduced to improve model performance.
Department(s)
Marketing
Document Type
Article
DOI
https://doi.org/10.1016/j.dss.2009.08.004
Keywords
accuracy, complexity, continuous variable, cecision analysis, decision variable, efficiency, graphical modelInfluence diagram, mixtures of truncated exponentials, probability
Publication Date
2009
Recommended Citation
Cobb, Barry R. "Efficiency of influence diagram models with continuous decision variables." Decision Support Systems 48, no. 1 (2009): 257-266.
Journal Title
Decision Support Systems
