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Decision Theory

Decision Theory

Principles and Approaches

Giovanni Parmigiani

Johns Hopkins University, Baltimore, USA

Lurdes Y. T. Inoue

University of Washington, Seattle, USA

with contributions by

Hedibert F. Lopes

University of Chicago, USA

A John Wiley and Sons, Ltd., Publication

Decision Theory

WILEY SERIES IN PROBABILITY AND STATISTICS

Established by W ALTER A. S HEWHART and S AMUEL S. W ILKS

Editors

D AVID J. B ALDING ,N OEL A. C. C RESSIE ,G ARRETT M. F ITZMAURICE ,I AIN M. J OHN -

STONE ,G EERT M OLENBERGHS ,D AVID W. S COTT ,A DRIAN F. M. S MITH ,R UEY S. T SAY ,

S ANFORD W EISBERG ,H ARVEY G OLDSTEIN .

Editors Emeriti

V IC B ARNETT ,J.S TUART H UNTER ,J OZEF L. T EUGELS

A COMPLETE LIST OF THE TITLES IN THIS SERIES APPEARS AT THE END OF THIS VOLUME .