12. Dynamic Programming

  1. Giovanni Parmigiani1 and
  2. Lurdes Y. T. Inoue2

Published Online: 1 DEC 2010

DOI: 10.1002/9780470746684.ch12

Decision Theory

Decision Theory

How to Cite

Parmigiani, G. and Inoue, L. Y. T. (2009) Dynamic Programming, in Decision Theory, John Wiley & Sons, Ltd, Chichester, UK. doi: 10.1002/9780470746684.ch12

Author Information

  1. 1

    Johns Hopkins University, Baltimore, USA

  2. 2

    University of Washington, Seattle, USA

Publication History

  1. Published Online: 1 DEC 2010
  2. Published Print: 17 APR 2009

Book Series:

  1. Wiley Series in Probability and Statistics

Book Series Editors:

  1. Walter A. Shewhart and
  2. Samuel S. Wilks

ISBN Information

Print ISBN: 9780471496571

Online ISBN: 9780470746684



  • dynamic programming;
  • multistage decision problems;
  • finite multistage problems - represented by decision trees;
  • industrial process control - initial motivating applications for dynamic programming algorithms;
  • travel insurance example revisited;
  • decision tree for two-stage travel insurance example;
  • two-stage finite decision problems;
  • trading off immediate gains and information;
  • variable selection in multiple regression;
  • sequential clinical trials


This chapter contains sections titled:

  • History

  • The travel insurance example revisited

  • Dynamic programming

  • Trading off immediate gains and information

  • Sequential clinical trials

  • Variable selection in multiple regression

  • Computing

  • Exercises