What does 'fuzzy logic' refer to in decision-making?

In the context of decision-making, 'fuzzy logic' refers to a method that accommodates the inherent uncertainties and imprecisions present in real-world situations. Unlike traditional binary logic, which demands clear, black-and-white decisions, fuzzy logic allows for a spectrum of truth values between completely true and completely false. This is particularly beneficial when dealing with ambiguous or qualitative data, where strict categories may not effectively reflect the nuances of reality.

By incorporating degrees of truth, fuzzy logic provides a more adaptable framework for decision-making, enabling participants to assess situations with varying levels of confidence and to arrive at conclusions that better reflect complex scenarios. This holistic approach makes it a useful tool in fields such as artificial intelligence, control systems, and various applications in business and economics, where precise data may not always be available.