Biostatistics 140.773
Foundations of Statistics I: Decision Theory

Course Goals and Approach

The goal of this course is to give an overview of fundamental ideas and results about rational decision making under uncertainty, highlighting the implications of these results for statistical practice. Rational decision making has been a chief area of investigation in a number of disciplines, in some cases for centuries. Several of the contributions and viewpoints are relevant to both the education of a statistician and to the development of sound statistical practices. Because of the wealth of important ideas, this course in decision theory aims for breadth rather than technical depth. It tries to bridge the gap among the different fields that have contributed to rational decision making, and presenting ideas in a unified framework while respecting and highlighting the different and sometimes conflicting perspectives.

The spirit of the course is that of a ``guided tour'' of some of the ideas and papers that have contributed to making decision theory so fascinating and important. I selected a set of exciting papers and book chapters, and developed a self contained lecture around each one. Naturally, many wonderful articles have been left out of the tour. My goal was to select a set that would work well in conveying an overall view of the fields and controversies, rather than to select `greatest hits'.

I will cover three areas: the axiomatic foundations of decision theory; statistical decision theory; and optimal design of experiments. At many universities, these are the subject of separate courses, often taught in different departments and schools. Current curricula in statistics and biostatistics are increasingly emphasizing interdisciplinary training, reflecting similar trends in research. Our plan reflects this need.

I designed our tour of decision theoretic ideas so that a student might emerge with an overall philosophy of decision making and its implications for the foundations of statistics. Ideally that philosophy will be the students' own, and will be the result of contact with some of the key ideas and controversies. I will attempt to put contributions of each article in some perspective and to highlight developments that followed. I will also use a consistent unified notation for the entire material and emphasize the relationships among different disciplines and points of view. But while most lectures include current day materials, methods and results, all try to preserve the viewpoint and flavor of the original contributions.

With very few exceptions, the mathematical level of the course is intermediate and will require no measure theory. Advanced calculus and intermediate statistical inference are very useful prerequisites, but an enterprising student can profit from much of the course even without this background. The most challenging aspect of the course lies in the swift pace at which each lecture introduces new and different concepts and points of view.