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Decision Based Design
book

Decision Based Design

by Vijitashwa Pandey
August 2013
Intermediate to advanced content levelIntermediate to advanced
284 pages
11h 23m
English
CRC Press
Content preview from Decision Based Design
76 Decision Based Design
standard deviation of $5. There is uncertainty about the mean of the out-
comes, and it is believed that it is distributed uniformly between $45 and
$60. The utility function of the decision maker is again given by
()
=
0.8
Ux x
.
The expected utility before consulting John is given by
∫∫
()
[]
=
−∞
()
;,5
15
0.8
2
45
60
EUxx
fxt
dtdx
T
N
(3.16)
The expected utility value of the uncertain node is calculated numerically
and found to be equal to 23.78, which is greater than the utility for $50, which
is 22.86. Therefore, before the information is acquired, the decision maker pre-
fers the lottery. The decision maker consults John again, who ...
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Publisher Resources

ISBN: 9781439882320