| bounded rationality | The limitations on decision making caused by costs, human abilities, time, technology, and availability of information.
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| certainty | Environment in which relevant parameters have known values.
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| decision tree | A schematic representation of the available alternatives and their possible consequences.
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| expected monetary value (EMV) criterion | The best expected value among the alternatives.
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| expected value of perfect information (EVPI) | The difference between the expected payoff with perfect information and the expected payoff under risk
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| Laplace | Choose the alternative with the best average payoff of any of the alternatives.
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| maximax | Choose the alternative with the best possible payoff.
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| maximin | Choose the alternative with the best of the worst possible payoffs.
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| minimax regret | Choose the alternative that has the least of the worst regrets.
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| payoff table | Table showing the expected payoffs for each alternative in every possible state of nature.
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| regret (opportunity loss) | The difference between a given payoff and the best payoff for a state of nature.
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| risk | Environment in which certain future events have probable outcomes.
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| sensitivity analysis | Determining the range of probability for which an alternative has the best expected payoff.
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| suboptimization | The result of different departments each attempting to reach a solution that is optimum for that department.
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| uncertainty | Environment in which it is impossible to assess the likelihood of various future events.
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