The decision analysis (DA) cycle is the top-level procedure for carrying out a decision analysis. Decision analysis (DA) is the discipline comprising the philosophy, methodology, and professional practice necessary to address important decisions in a formal manner.

The traditional decision analysis cycle consists of four phases:

  • basis development
  • deterministic sensitivity analysis
  • probabilistic analysis
  • basis appraisal.

The diagram below depicts the decision analysis cycle:

The decision analysis cycle

A revised form of the cycle consists of an attention-focusing method followed by a decision method, each of which is composed of three stages:

  • formulation
  • evaluation
  • appraisal.

See also

  • Decision model
  • Decision theory
  • Enterprise decision management

References

  • Mohammed A. Mian text retrieved 17/09/2011