Definition of 'Decision Analysis - DA'
A systematic, quantitative and visual approach to addressing and evaluating important choices confronted by businesses. Decision analysis utilizes a variety of tools to evaluate all relevant information to aid in the decision making process. A graphical representation of alternatives and possible solutions, as well as challenges and uncertainties, can be created on a decision tree or influence diagram.
The term decision analysis originated in 1964 by Ronald A. Howard, professor of Management Science and Engineering at Stanford University.
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