This textbook offers a comprehensive analysis of medical decision making under uncertainty by combining Test Information Theory with Expected Utility Theory. The book shows how the parameters of Bayes’ theorem can be combined with a value function of health states to arrive at informed test...

1 Introduction -- 2 Basic Tools in Medical Decision Making -- 3 Expected Utility, Risk Aversion and Prudence -- 4 Treatment Decisions Without Diagnostic Tests -- 5 Treatment Decisions with Diagnostic Tests -- 6 Treatment Decisions Under Comorbidity Risk -- 7 Optimal Strategy for Multiple...