Bayes Procedures for Truncated Sequential Game Identifying an Alternative of Different Sampling Plans

Abstract

Recently, problems of decision making process have been discussed in many fields, and in particular, several mathematical approaches have been proposed for economic problems. Decision making for management contains many complex situations and has theoretically unsolved problems. However, there are effective approaches for some problems. One approach is a sequential decision analysis by a decision tree. This approach is often used because the analysis is applicable even if the decision stages are mutually dependent on each other or are subject to certain constraints. On the other hand, it is known that a sequential analysis by the statistical decision theory can be used for problems of decision making even under uncertain information. This paper investigates a truncated sequential game, an N-truncated sequential analysis.