decision analysis
Enhancing Decision Analysis with a Large Language Model: pyDecision a Comprehensive Library of MCDA Methods in Python
Pereira, Valdecy, Basilio, Marcio Pereira, Santos, Carlos Henrique Tarjano SantosCarlos Henrique Tarjano
Purpose: Multicriteria decision analysis (MCDA) has become increasingly essential for decision-making in complex environments. In response to this need, the pyDecision library, implemented in Python and available at https://bit.ly/3tLFGtH, has been developed to provide a comprehensive and accessible collection of MCDA methods. Methods: The pyDecision offers 70 MCDA methods, including AHP, TOPSIS, and the PROMETHEE and ELECTRE families. Beyond offering a vast range of techniques, the library provides visualization tools for more intuitive results interpretation. In addition to these features, pyDecision has integrated ChatGPT, an advanced Large Language Model, where decision-makers can use ChatGPT to discuss and compare the outcomes of different methods, providing a more interactive and intuitive understanding of the solutions. Findings: Large Language Models are undeniably potent but can sometimes be a double-edged sword. Its answers may be misleading without rigorous verification of its outputs, especially for researchers lacking deep domain expertise. It's imperative to approach its insights with a discerning eye and a solid foundation in the relevant field. Originality: With the integration of MCDA methods and ChatGPT, pyDecision is a significant contribution to the scientific community, as it is an invaluable resource for researchers, practitioners, and decision-makers navigating complex decision-making problems and seeking the most appropriate solutions based on MCDA methods.
Bayesian Quantile Regression with Subset Selection: A Posterior Summarization Perspective
Feldman, Joseph, Kowal, Daniel
Quantile regression is a powerful tool for inferring how covariates affect specific percentiles of the response distribution. Existing methods either estimate conditional quantiles separately for each quantile of interest or estimate the entire conditional distribution using semi- or non-parametric models. The former often produce inadequate models for real data and do not share information across quantiles, while the latter are characterized by complex and constrained models that can be difficult to interpret and computationally inefficient. Further, neither approach is well-suited for quantile-specific subset selection. Instead, we pose the fundamental problems of linear quantile estimation, uncertainty quantification, and subset selection from a Bayesian decision analysis perspective. For any Bayesian regression model, we derive optimal and interpretable linear estimates and uncertainty quantification for each model-based conditional quantile. Our approach introduces a quantile-focused squared error loss, which enables efficient, closed-form computing and maintains a close relationship with Wasserstein-based density estimation. In an extensive simulation study, our methods demonstrate substantial gains in quantile estimation accuracy, variable selection, and inference over frequentist and Bayesian competitors. We apply these tools to identify the quantile-specific impacts of social and environmental stressors on educational outcomes for a large cohort of children in North Carolina.
Subset selection for linear mixed models
Linear mixed models (LMMs) are instrumental for regression analysis with structured dependence, such as grouped, clustered, or multilevel data. However, selection among the covariates--while accounting for this structured dependence--remains a challenge. We introduce a Bayesian decision analysis for subset selection with LMMs. Using a Mahalanobis loss function that incorporates the structured dependence, we derive optimal linear actions for any subset of covariates and under any Bayesian LMM. Crucially, these actions inherit shrinkage or regularization and uncertainty quantification from the underlying Bayesian LMM. Rather than selecting a single "best" subset, which is often unstable and limited in its information content, we collect the acceptable family of subsets that nearly match the predictive ability of the "best" subset. The acceptable family is summarized by its smallest member and key variable importance metrics. Customized subset search and out-of-sample approximation algorithms are provided for more scalable computing. These tools are applied to simulated data and a longitudinal physical activity dataset, and in both cases demonstrate excellent prediction, estimation, and selection ability.
Fast, Optimal, and Targeted Predictions using Parametrized Decision Analysis
Prediction is critical for decision-making under uncertainty and lends validity to statistical inference. With targeted prediction, the goal is to optimize predictions for specific decision tasks of interest, which we represent via functionals. Although classical decision analysis extracts predictions from a Bayesian model, these predictions are often difficult to interpret and slow to compute. Instead, we design a class of parametrized actions for Bayesian decision analysis that produce optimal, scalable, and simple targeted predictions. For a wide variety of action parametrizations and loss functions--including linear actions with sparsity constraints for targeted variable selection--we derive a convenient representation of the optimal targeted prediction that yields efficient and interpretable solutions. Customized out-of-sample predictive metrics are developed to evaluate and compare among targeted predictors. Through careful use of the posterior predictive distribution, we introduce a procedure that identifies a set of near-optimal, or acceptable targeted predictors, which provide unique insights into the features and level of complexity needed for accurate targeted prediction. Simulations demonstrate excellent prediction, estimation, and variable selection capabilities. Targeted predictions are constructed for physical activity data from the National Health and Nutrition Examination Survey (NHANES) to better predict and understand the characteristics of intraday physical activity.
Expert Systems: Techniques, Tools, and Applications
The book is edited by Philip Klahr and the late Donald A. Waterman, both of Rand Corporation. The papers are selected from RAND technical reports published from 1977 to 1985. The book is most valuable to people learning knowledge engineering. Four of the papers provide interesting glimpses at the problems involved in transforming knowledge about a domain into computer representations. In addition, the book contains one or two interesting papers for researchers in each of the areas of knowledge acquisition, reasoning with uncertainty, and distributed problem solving.
Expert Systems: Techniques, Tools, and Applications
The book is edited by Philip Klahr and the late Donald A. Waterman, both of Rand Corporation. The papers are selected from RAND technical reports published from 1977 to 1985. The book is most valuable to people learning knowledge engineering. Four of the papers provide interesting glimpses at the problems involved in transforming knowledge about a domain into computer representations. In addition, the book contains one or two interesting papers for researchers in each of the areas of knowledge acquisition, reasoning with uncertainty, and distributed problem solving.
Decision Analysis and Expert Systems
Decision analysis and knowledge-based expert systems share some common goals. Both technologies are designed to improve human decision making; they attempt to do this by formalizing human expert knowledge so that it is amenable to mechanized reasoning. However, the technologies are based on rather different principles. Decision analysis is the application of the principles of decision theory supplemented with insights from the psychology of judgment. Expert systems, at least as we use this term here, involve the application of various logical and computational techniques of AI to the representation of human knowledge for automated inference.
Medical Decision Support
This course presents the main concepts of decision analysis, artificial intelligence, and predictive model construction and evaluation in the specific context of medical applications. The advantages and disadvantages of using these methods in real-world systems are emphasized, while students gain hands-on experience with application specific methods. The technical focus of the course includes decision analysis, knowledge-based systems (qualitative and quantitative), learning systems (including logistic regression, classification trees, neural networks), and techniques to evaluate the performance of such systems.
Making Decisions with Belief Functions
A primary motivation for reasoning under uncertainty is to derive decisions in the face of inconclusive evidence. However, Shafer's theory of belief functions, which explicitly represents the underconstrained nature of many reasoning problems, lacks a formal procedure for making decisions. Clearly, when sufficient information is not available, no theory can prescribe actions without making additional assumptions. Faced with this situation, some assumption must be made if a clearly superior choice is to emerge. In this paper we offer a probabilistic interpretation of a simple assumption that disambiguates decision problems represented with belief functions. We prove that it yields expected values identical to those obtained by a probabilistic analysis that makes the same assumption. In addition, we show how the decision analysis methodology frequently employed in probabilistic reasoning can be extended for use with belief functions.
Defeasible Decisions: What the Proposal is and isn't
In two recent papers, I have proposed a description of decision analysis that differs from the Bayesian picture painted by Savage, Jeffrey and other classic authors. Response to this view has been either overly enthusiastic or unduly pessimistic. In this paper I try to place the idea in its proper place, which must be somewhere in between. Looking at decision analysis as defeasible reasoning produces a framework in which planning and decision theory can be integrated, but work on the details has barely begun. It also produces a framework in which the meta-decision regress can be stopped in a reasonable way, but it does not allow us to ignore meta-level decisions. The heuristics for producing arguments that I have presented are only supposed to be suggestive; but they are not open to the egregious errors about which some have worried. And though the idea is familiar to those who have studied heuristic search, it is somewhat richer because the control of dialectic is more interesting than the deepening of search.