An Application of the Z-Number Concept to Dynamic Decision Making

Abstract

For the first time, decision making under fuzzy information and its application to multistage problems was considered by Bellman and Zadeh. Nowadays, a large class of works devoted to decision making in fuzzy and probabilistic information settings exists. However, the aspect of taking into account partially reliable information is in its initial stage of consideration. The issue is that in dynamic problems, information about future states of a process is not completely reliable. The concept of a Z-number was introduced by Zadeh to deal with partially reliable information. This paper is devoted to sensitivity analysis of the solution of multi-stage decision making problem under Z-valued information obtained in our previous work. In this work, an application of this concept to multistage decision making in economic problem under imperfect information is considered. © The Author(s), under exclusive license to Springer Nature Switzerland AG 2024.