Decision analysis cycle

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:

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.

• Decision model
• Decision theory
• Enterprise decision management

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