Optimal decisions under uncertainty
Although dynamic strategies can substantially improve project value, they are rarely used by industry. There are two reasons for this: the complexity of the algorithms used to make optimal equential decisions under uncertainty, and difficulties in visualising the optimal strategies. Decision-makers in industry need a way to graphically display the results obtained to facilitate understanding and present results to others. An intuitive display of the boundaries between regions of different optimal decisions (switching boundaries) would greatly assist industry with optimal sequential decision-making under uncertainty.
