In statistics and decision theory a loss function is a function that maps an event onto a real number intuitively representing some "cost" associated with the event. Typically it is used for parameter estimation, and the event in question is some function of the difference between estimated and true values for an instance of data. In the context of economics, for example, this is usually economic cost or regret.
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Linear programming
Linear programming (LP, or linear optimization) is a mathematical method for determining a way to achieve the best outcome (such as maximum profit or lowest cost) in a given mathematical model for some list of requirements represented as linear relationships. Linear programming is a specific case of mathematical programming. More formally, linear programming is a technique for the optimization of a linear objective function, subject to linear equality and linear inequality constraints.
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Mathematical optimization
In mathematics, computer science, or management science, mathematical optimization (alternatively, optimization or mathematical programming) refers to the selection of a best element from some set of available alternatives. In the simplest case, an optimization problem consists of maximizing or minimizing a real function by systematically choosing input values from within an allowed set and computing the value of the function.
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