BU275 Study Guide - Midterm Guide: International Criminal Tribunal For The Former Yugoslavia, Random Variable
Document Summary
Choose max of survey vs no survey. Expected value of sample information = amount able to pay. = max w/ survey max w/o survey (maximize) - cost. = max w/o survey max w/survey (minimize) Evpi = evwpi= bc no survey evwopi = max ev no survey. Total worth of a particular outcome, reflecting the decision maker"s attitude toward factors o. Happiness you experience is done on a 1oo pt scale than another, it dominates that other: the dominated decision is dropped. Uncertainty no probability information on states of nature. Optimistic best possible for each decision (profit max =max of maximax) (cost min = min of minimins) Conservative (profit max = max of maximin) (cost min = min of minimax) Realism/hurwicz (profit max = max of maximize) (cost min. = min of minimize) *** given alpha (between 0-1) *** Out 2 maximization (pick max) (max*alpha) + (min*(1-alph)) (max*alpha) + (min*(1-alph) Minimization (pick min) cost (min*alpha) + (max*(1-alph)) (min*alpha) + (max*(1-alph))
