Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
477843 | European Journal of Operational Research | 2007 | 8 Pages |
Abstract
This paper examines issues related to various decision-based analytic approaches to sequential choice of projects, with special motivation from and application in the pharmaceutical industry. In particular, the Pearson index and Gittins index are considered as key strategic decision-making tools for the selection of R&D projects. It presents a proof of optimality of the Pearson index based on the Neyman–Pearson lemma. Emphasis is also given to how a project manager may differentiate between the two indices based on concepts from statistical decision theory. This work demonstrates and justifies the correct use of the Pearson index.
Related Topics
Physical Sciences and Engineering
Computer Science
Computer Science (General)
Authors
Michael A. Talias,