Back to Basics: Why Bayes Matters in Decision Analysis

April 18, 2024

Speaker: Sheldon Bernard (A440 Management)

Abstract:

This conversation focuses on elucidating the fundamental role of the Bayesian framework in decision analysis, a crucial discipline and toolkit for navigating decision-making under uncertainty. Tracing back to our roots, we aim to unfold the connection between Bayesian Decision Theory and Inference and its relation to Decision Analysis. By offering thought-provoking insights (via case study) into the broader picture and practical applications of Bayesian Inference, we extend our exploration to its capacity for solving complex business problems with data. We will discuss how the Bayesian foundation provides the path to integrate Behavioral Economics, Decision Analysis, and Data Science. The aim is to provide perspective on how a Bayesian framework can help equip decision-makers with strategies to diminish bias and augment decision quality.