Expected Utility from Multinomial Second-order Probability Distributions
2010 (English)In: "Polibits" Research Journal on Computer Science and Computer Engineering with Applications, ISSN 1870-9044, no 42, 71-75 p.Article in journal (Refereed) Published
We consider the problem of maximizing expected utility when utilities and probabilities are given by discrete probability distributions so that expected utility is a discrete stochastic variable. As for discrete second-order distributions, that is probability distributions where the variables are themselves probabilities, the multinomial family is a reasonable choice at least if first-order probabilities are interpreted as relative frequencies. We suggest a decision rule theat reflects the uncertainty present in distribution-based probabilities and utilities and we show an example of this rule in action with multinomial second-order distributions.
Place, publisher, year, edition, pages
Mexico City: Center for Technological Design and Development in Computer Science (CIDETEC) , 2010. no 42, 71-75 p.
Imprecise probability. second-order probability, discrete probability distributions, multinomial distributions, expected utilty.
Research subject Computer and Systems Sciences
IdentifiersURN: urn:nbn:se:su:diva-54692OAI: oai:DiVA.org:su-54692DiVA: diva2:396942