Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
1005399 | International Journal of Accounting Information Systems | 2011 | 10 Pages |
The main purpose of this article is to introduce the evidential reasoning approach, a research methodology, for decision making under uncertainty. Bayesian framework and Dempster–Shafer theory of belief functions are used to model uncertainties in the decision problem. We first introduce the basics of the DS theory and then discuss the evidential reasoning approach and related concepts. Next, we demonstrate how specific decision models can be developed from the basic evidential diagrams under the two frameworks. It is interesting to note that it is quite efficient to develop Bayesian models of the decision problems using the evidential reasoning approach compared to using the ladder diagram approach as used in the auditing literature. In addition, we compare the decision models developed in this paper with similar models developed in the literature.
Research Highlights► Evidential reasoning approach. ► Decision making using Bayesian framework. ► Decision making under Dempster-Shafer theory of belief functions. ► Belief Functions. ► Risk assessment models.