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Decision alternativesOptions available to the decision maker.
Chance eventAn uncertain future event affecting the consequence, or payoff, associated with a decision.
ConsequenceThe result obtained when a decision alternative is chosen and a chance event occurs.
States of natureThe possible outcomes for chance events that affect the payoff associated with a decision alternative.
Influence diagramA graphical device that shows the relationship among decisions, chance events, and consequences for a decision problem.
NodeAn intersection or junction point of an influence diagram or a decision tree.
Decision nodesNodes where a decision is made.
Chance nodesNodes where a state of nature (an uncertain event) occurs.
Terminal nodesNodes where a payoff occurs (also called consequence nodes).
PayoffA monetary or temporal representation of result of a decision.
Payoff tableA matrix representation of payoffs of each alternative with respect to each state of nature.
Decision treeAn illustrative representation of a decision problem in sequential format.
Decision branchBranches that come after decision nodes representing alternatives.
Chance branchBranches that come after chance nodes representing states of nature.
Expected valueWeighted average of payoffs.
Expected value of perfect informationEV of information what would tell the DM exactly which state of nature is going to occur.