The Knowledge Base Paradigm

for

Decision Management

Decision Representation

• Business Rules
• Decision Tables
• Business Processes
• DMN
  • Decision Tables
  • FEEL
• Logic

Declarative

Problem Solving

• Deductive logic – deduction
• Query languages (SQL, datalog) – query answering 
• Constraint programming – constraint solving  
• Logic Programming – programming
• Abductive Logic Programming – abduction
• Inductive Logic Programming - induction
• PDDL, strips – planning
• Answer set programming – model generation

Declarative

Problem Solving

Focus on a single specific form of inference

=> One representation, one problem 

Knowledge Base

Paradigm

Information

≠ Solution

≠ Problem description

= Passive, independent of specific problem

=> One representation, many problems

Knowledge Base

Paradigm

FO(.)

• IDP's Representation Language
  • Extension of first-order logic: 
    • Types
    • Arithmetic
    • Aggregates
    • Inductive definitions
    • ...
  • Formal Model Semantics

Decision Logic

+

Decision

Specification

+

Inference

Decision Management

Knowledge Base Paradigm

Modelling Business Decisions

An Example

Car Insurance

DMN - DRD

Potential Theft Rating

• A car's theft rating is high if any of the following applies:
  • The car is a convertible
  • The car's price is over $45 000
  • The car's model is on the High Theft Probability Auto list  
• If all of the following are true the car's theft rating is moderate: 
  • ​The car's price is between $20 000 and $45 000
  • The car's model is not on the High Theft Probability Auto list
• ​If all the following are true the car's theft rating if low: 
  • ​The car's price is lower than $20 000
  • The car's model is not on the High Theft Probability Auto list

Decision Table

Potential Theft Rating

Definition

Potential Theft Rating

FO(ID) Definitions

A definition ∆ of the logic FO(ID) is a set of definitional rules: ∀ x : (P(t) ← ϕ) where ϕ is a FO-formula and t a tuple of n-terms, both with free variables amongst x.

Decision Logic in FO(ID)

A decision's decision logic* in FO(ID) is a set of rules:

∀ x : (P(t) ← ϕ) where ϕ is a FO-formula and t a tuple of n-terms, both with free variables amongst x.

* for decisions representable by a decision table

Decision Logic Definition

Functionality

• Completeness checking
• Exclusivity checking
• Compliance checking

• Invokation