Optimize distributionally robust action

What it's for

Extends fixed-scenario What-If analysis into distributionally robust optimization with an explicit adversarial probability stress test and radius sensitivity.

What you give it

Inputs split into evidence read from your connected systems, calibration your team owns, and numerical controls that affect precision but never the result's meaning.

{
  "actions": [
    {
      "id": "fragile_growth",
      "payoffs": {
        "crash": -50,
        "flat": 10,
        "growth": 20
      }
    },
    {
      "id": "resilient",
      "payoffs": {
        "crash": 8,
        "flat": 11,
        "growth": 12
      }
    }
  ],
  "kl_radius": 0.1,
  "scenarios": [
    {
      "id": "growth",
      "probability": 0.6
    },
    {
      "id": "flat",
      "probability": 0.35
    },
    {
      "id": "crash",
      "probability": 0.05
    }
  ]
}

What you get back

This is the actual output of running the example above — computed by the same function the platform calls, not an illustration.

{
  "action_ranking": [
    {
      "action_id": "resilient",
      "adversarial_scenario_probabilities": {
        "crash": 0.1629,
        "flat": 0.3821,
        "growth": 0.455
      },
      "ambiguity_premium": 0.4835,
      "dual_temperature": 2.744656,
      "nominal_expected_value": 11.45,
      "worst_case_expected_value": 10.9665
    },
    {
      "action_id": "fragile_growth",
      "adversarial_scenario_probabilities": {
        "crash": 0.1699,
        "flat": 0.3465,
        "growth": 0.4836
      },
      "ambiguity_premium": 8.3561,
      "dual_temperature": 48.657145,
      "nominal_expected_value": 13,
      "worst_case_expected_value": 4.6439
    }
  ],
  "ambiguity_set": {
    "base_probabilities": {
      "crash": 0.05,
      "flat": 0.35,
      "growth": 0.6
    },
    "divergence": "KL(q||p)",
    "radius": 0.1
  },
  "assumptions": [
    "The scenario set covers the material futures even though their base probabilities may be misspecified.",
    "The KL radius is a governance choice that should be calibrated with probability-estimation error or stress policy.",
    "Payoffs are comparable across actions and include material implementation costs and harms.",
    "The adversarial distribution is a stress test inside the ambiguity set, not a forecast of what will happen."
  ],
  "method": "kl_distributionally_robust_action_v1",
  "nominal_winner_id": "fragile_growth",

How it works

Constrained optimization — Pick the best feasible option under real limits — budget, headcount, dependencies, capacity — rather than ranking a list and hoping it fits.

1. 1 Choose the action with the best worst-case expected value when scenario probabilities may vary inside a KL-divergence ambiguity set.
2. 2 Evaluate the method-specific diagnostics and gates returned by the function, then abstain unless the declared decision clears them under locally governed thresholds.

Before you trust it

Every tool in the catalog ships with the conditions under which its answer is meaningful — and the conditions under which it should abstain instead of guessing.

Calibrating it to your org

Calibration workflow

1. 1 Define the management decision, target outcome, aggregate unit, privacy boundary, cadence, and prediction/intervention horizon for this organization.
2. 2 Build a tenant-scoped historical cohort using only information available before each prediction or decision; preserve zero periods, censoring, assignment probabilities, and unresolved outcomes when the method requires them.
3. 3 Estimate statistical parameters on training history, but obtain costs, utilities, risk tolerance, practical-effect thresholds, capacity, and policy constraints from accountable decision owners.
4. 4 Validate on later time windows or held-out aggregate units at the deployment grain, against a simple baseline and the function-specific validation strategy.
5. 5 Deploy only if the returned decision clears evidence, overlap, calibration, robustness, and guardrail checks; warning, unsupported, schema-gap, and fallback decisions are abstentions.
6. 6 Monitor realized outcomes, data drift, coverage, and decision regret; recalibrate at a governed cadence or after a detected regime/definition change, never merely because a stakeholder dislikes the result.

Call it from your AI

You don't wire up 388 tools in your MCP client. The GitRevio MCP server exposes 18 tools, three of which let an agent search the catalog, read a tool's schema, and run it — so the assistant finds this one on its own.

gitrevio_capabilities_search
  { "q": "choose the action with the best" }
  → finds "optimize_distributionally_robust_action"

gitrevio_capability_describe
  { "capability_id": "optimize_distributionally_robust_action" }
  → returns the input schema and agent guidance shown on this page

gitrevio_capability_run
  { "capability_id": "optimize_distributionally_robust_action", "arguments": { ... } }
  → returns the result shown above

Works in Claude Desktop, Claude Code, Cursor, Cline, Continue.dev, Goose and Aider. See the MCP server.

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