Any decision made implies a combination of prior over those values and risk tolerance.
If you treat budgeting as an optimization problem, you need forecasts, not priors.
I would also suspect that real-life business budgets will be hard to set as “rigorous optimization problems” because in reality you have discontinuities, nonlinear responses, and all kinds of funky dependencies between different parts of the budget.
If you treat budgeting as an optimization problem, you need forecasts, not priors.
I would also suspect that real-life business budgets will be hard to set as “rigorous optimization problems” because in reality you have discontinuities, nonlinear responses, and all kinds of funky dependencies between different parts of the budget.