BUS 221 Lecture Notes - Lecture 9: Entscheidungsproblem
6 Feb 2016
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A simple, abstract representation of something complex. States: things you could do/choose, things that could happen in the world, expected (value/utility to you) A rule like maximize utility only makes sense relative to some model of the decision problem. Relatively easy to specify, as long as you can agree on what the. Ways the world could be or what could end up happening: it rains; it doesn"t rain, your house burns down; your house doesn"t burn. You need to use judgment in outlining relevant possible states! (not. In some cases, different possible states are defined for each act you might choose. In other cases, possible states are the same regardless. What"s the result for you if you choose this (act) and if that (state) You need to specify: the possible acts, the possible states of the world, the outcomes. But in real life, should we always maximize ($, utility) Not always trying to maximize $ or utility.
