Decision theory

Decision theory is a way of helping us make decisions when we don't know what to do. It looks at what we want to accomplish (our goals) and helps us figure out the best way to get there. It uses things like probabilities, risks, rewards, and even costs to help come up with the best decision. So, for example, if you were deciding whether or not to invest money in a stock, you could use decision theory to help you figure out if it's a good investment or too risky. You'd look at the chances of a return on your investment, and weigh that against the risks and costs involved. Then, you'd make the best decision you can.