Knowledge Representation: On Decision-Making (Quotes)

 "It [probability] is the very guide of life, and hardly can we take a step or make a decision of any kind without correctly or incorrectly making an estimation of probabilities." (William S Jevons, "The Principles of Science: A Treatise on Logic and Scientific Method", 1874)

"Great decisions in the realms of thought and momentous discoveries and solutions of problems are only possible to an individual working in solitude." (Sigmund Freud, "Group Psychology and the Analysis of the Ego", 1921)

“The fundamental gospel of statistics is to push back the domain of ignorance, prejudice, rule-of-thumb, arbitrary or premature decisions, tradition, and dogmatism and to increase the domain in which decisions are made and principles are formulated on the basis of analyzed quantitative facts.” (Robert W Burgess, “The Whole Duty of the Statistical Forecaster”, Journal of the American Statistical Association , Vol. 32, No. 200, 1937)

"Years ago a statistician might have claimed that statistics deals with the processing of data [...]today’s statistician will be more likely to say that statistics is concerned with decision making in the face of uncertainty." (Herman Chernoff & Lincoln E Moses, "Elementary Decision Theory", 1959) 

"[Game theory is] essentially a structural theory. It uncovers the logical structure of a great variety of conflict situations and describes this structure in mathematical terms. Sometimes the logical structure of a conflict situation admits rational decisions; sometimes it does not." (Anatol Rapoport, "Prisoner's Dilemma: A study in conflict and cooperation", 1965)E

"Now we are looking for another basic outlook on the world - the world as organization. Such a conception - if it can be substantiated - would indeed change the basic categories upon which scientific thought rests, and profoundly influence practical attitudes. This trend is marked by the emergence of a bundle of new disciplines such as cybernetics, information theory, general system theory, theories of games, of decisions, of queuing and others; in practical applications, systems analysis, systems engineering, operations research, etc. They are different in basic assumptions, mathematical techniques and aims, and they are often unsatisfactory and sometimes contradictory. They agree, however, in being concerned, in one way or another, with ‘systems’, ‘wholes’ or ‘organizations’; and in their totality, they herald a new approach." (Ludwig von Bertalanffy, "General System Theory", 1968)

"Each of us uses models constantly. Every person in his private life and in his business life instinctively uses models for decision making. The mental image of the world around you which you carry in your head is a model. […] A mental image is a model. All our decisions are taken on the basis of models." (Jay W Forrester, "Counter-Intuitive Behaviour of Social Systems", Technological Review 73, 1971)

"A somewhat deeper analysis suggests that a decision is a deliberate act of selection, by the mind, of an alternative from a set of competing alternatives in the hope, expectation, or belief that the actions envisioned in carrying out the selected alternative will accomplish certain goals. Decision is the selection of a mental state: it is a commitment to certain actions or inactions. Other people may observe our actions but they do not directly observe our decisions." (Peter C Fishburn, "Personalistic Decision Theory: Exposition and Critique", 1972)

"The human condition can almost be summed up in the observation that, whereas all experiences are of the past, all decisions are about the future. It is the great task of human knowledge to bridge this gap and to find those patterns in the past which can be projected into the future as realistic images." (Kenneth E Boulding, [foreword] 1972)

"Decision-making problems (hypothesis testing) involve situations where it is desired to make a choice among various alternative decisions (hypotheses). Such problems can be viewed as generalized state estimation problems where the definition of state has simply been expanded." (Fred C Scweppe, "Uncertain dynamic systems", 1973)

"Statistics is a body of methods and theory applied to numerical evidence in making decisions in the face of uncertainty." (Lawrence Lapin, "Statistics for Modern Business Decisions", 1973)

"The science of statistics may be described as exploring, analyzing and summarizing data; designing or choosing appropriate ways of collecting data and extracting information from them; and communicating that information. Statistics also involves constructing and testing models for describing chance phenomena. These models can be used as a basis for making inferences and drawing conclusions and, finally, perhaps for making decisions." (Fergus Daly et al, "Elements of Statistics", 1995)

"The major fault in this process - and thus, in the way we were making decisions - is that it lacks an organizing framework. In pursuing a variety of goals and objectives, in whatever situation we manage, we often fail to see that some of them are in conflict and that the achievement of one might come at the expense of achieving another. In weighing up the actions we might take to reach our goals and objectives, we have no way to account for nature's complexity and only rarely factor it in." (Allan Savory & Jody Butterfield, "Holistic Management: A new framework for decision making", 1988)

"A holistic perspective is essential in management. If we base management decisions on any other perspective, we are likely to experience results different from those intended because only the whole is reality." (Allan Savory & Jody Butterfield, "Holistic Management: A new framework for decision making", 1988)

"Faced with the overwhelming complexity of the real world, time pressure, and limited cognitive capabilities, we are forced to fall back on rote procedures, habits, rules of thumb, and simple mental models to make decisions. Though we sometimes strive to make the best decisions we can, bounded rationality means we often systematically fall short, limiting our ability to learn from experience." (John D Sterman, "Business Dynamics: Systems thinking and modeling for a complex world", 2000)

"Just as dynamics arise from feedback, so too all learning depends on feedback. We make decisions that alter the real world; we gather information feedback about the real world, and using the new information we revise our understanding of the world and the decisions we make to bring our perception of the state of the system closer to our goals." (John D Sterman, "Business dynamics: Systems thinking and modeling for a complex world", 2000)

"No plea about inadequacy of our understanding of the decision-making processes can excuse us from estimating decision making criteria. To omit a decision point is to deny its presence - a mistake of far greater magnitude than any errors in our best estimate of the process." (Jay W Forrester, "Perspectives on the modelling process", 2000)

"The robustness of the misperceptions of feedback and the poor performance they cause are due to two basic and related deficiencies in our mental model. First, our cognitive maps of the causal structure of systems are vastly simplified compared to the complexity of the systems themselves. Second, we are unable to infer correctly the dynamics of all but the simplest causal maps. Both are direct consequences of bounded rationality, that is, the many limitations of attention, memory, recall, information processing capability, and time that constrain human decision making." (John D Sterman, "Business Dynamics: Systems thinking and modeling for a complex world", 2000)

"Diversity and independence are important because the best collective decisions are the product of disagreement and contest, not consensus or compromise." (James Surowiecki, "The Wisdom of Crowds", 2005)

"The fact that cognitive diversity matters does not mean that if you assemble a group of diverse but thoroughly uninformed people, their collective wisdom will be smarter than an expert's. But if you can assemble a diverse group of people who possess varying degrees of knowledge and insight, you're better off entrusting it with major decisions rather than leaving them in the hands of one or two people, no matter how smart those people are." (James Surowiecki, "The Wisdom of Crowds", 2005)

"[...] under the right circumstances, groups are remarkably intelligent, and are often smarter than the smartest people in them. Groups do not need to be dominated by exceptionally intelligent people in order to be smart. Even if most of the people within a group are not especially well-informed or rational, it can still reach a collectively wise decision." (James Surowiecki, "The Wisdom of Crowds", 2005)

"[...] a model is a tool for taking decisions and any decision taken is the result of a process of reasoning that takes place within the limits of the human mind. So, models have eventually to be understood in such a way that at least some layer of the process of simulation is comprehensible by the human mind. Otherwise, we may find ourselves acting on the basis of models that we don’t understand, or no model at all.” (Ugo Bardi, “The Limits to Growth Revisited”, 2011)

"In general, when building statistical models, we must not forget that the aim is to understand something about the real world. Or predict, choose an action, make a decision, summarize evidence, and so on, but always about the real world, not an abstract mathematical world: our models are not the reality - a point well made by George Box in his oft-cited remark that "all models are wrong, but some are useful". (David Hand, "Wonderful examples, but let's not close our eyes", Statistical Science 29, 2014)

"So everyone has and uses mental representations. What sets expert performers apart from everyone else is the quality and quantity of their mental representations. Through years of practice, they develop highly complex and sophisticated representations of the various situations they are likely to encounter in their fields - such as the vast number of arrangements of chess pieces that can appear during games. These representations allow them to make faster, more accurate decisions and respond more quickly and effectively in a given situation. This, more than anything else, explains the difference in performance between novices and experts." (Anders Ericsson & Robert Pool, "Peak: Secrets from  the  New  Science  of  Expertise" , 2016)