Introduction to uncertainty Flashcards
1
Q
Definition of lottery and degenerate lottery. Give an example with a decision tree.
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2
Q
Definition of Nature (N) in the language of Game Theory
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3
Q
Definition of Expected utility and why we need it.
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4
Q
When is preference relation ≽ on P said to be represented by a von Neumann Morgenstern utility function u?
Sufficient conditions to be satisfied… (axioms)
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5
Q
3 types of risk attitudes and utility functions that change the preferences of the player.
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6
Q
When do we have a rational player given a decision problem?
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7
Q
Resolve decision trees with Backward induction
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8
Q
How much is it worth to know Nature choices? Provide the example at slide 34 pdf 2.
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9
Q
Why do we need the theory of decision-making under uncertainty?
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