In a problem of decision making under uncertainty, the payoff is random, obeying some probability distribution. The distribution depends upon both the problem faced and the action taken by the decision maker. For example, in the selection of a portfolio, funds are allocated among securities,...

A problem of optimal machine maintenance policy is studied. The value of the machine's output is independent of age, but the natural probability of machine failure increases with age. Preventive maintenance can be applied to reduce the probability of machine failure (but a failed machine can...