Technical note: Sufficient operational statistics
Production and Operations Management · 2022 · Volume 31 · Issue 6
Abstract
The decision in a data-driven decision-making problem is generally a high-dimensional function of data. When can the decision be reduced to a single-dimensional function of a statistic? This study addresses this question based on the operational statistics literature. The study introduces the notion of sufficient operational statistics and derives the factorization theorem for identifying such statistics. Further, the study proposes a solution procedure based on the statistics and derives the finite-sample performance bound of the proposed solution.
Keywords
data-driven decision making, data reduction, operational statistics, sufficiency
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