Monday, 12 February 2018

An Improved Method for Solving Hybrid Influence Diagrams

ost decisions are made in the face of uncertain factors and outcomes. In a typical decision problem, uncertainties involve both continuous factors (e.g. amount of profit) and discrete factors (e.g. presence of a small number of risk events). Tools such as decision trees and influence diagrams are used to cope with uncertainty regarding decisions, but most implementations of these tools can only deal with discrete or discretized factors and ignore continuous factors and their distributions.

A paper just published in the International Journal of Approximate Reasoning presents a novel method that overcomes a number of these limitations. The method is able to solve decision problems with both discrete and continuous factors in a fully automated way. The method requires that the decision problem is modelled as a Hybrid Influence Diagrams, which is an extension of influence diagrams containing both discrete and continuous nodes, and solves it by using a state-of-the-art inference algorithm called Dynamic Discretization. The optimal policies calculated by the method are presented in a simplified decision tree.

The full reference is:

Yet, B., Neil, M., Fenton, N., Dementiev, E., & Constantinou, A. (2018). "An Improved Method for Solving Hybrid Influence Diagrams". International Journal of Approximate Reasoning. DOI: 10.1016/j.ijar.2018.01.006  Preprint (open access) available here.

Acknowledgements: Part of this work was performed under the auspices of EU project ERC-2013-AdG339182-BAYES_KNOWLEDGE

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