Skip to Main Content
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
96 Decision Based Design
3.10.5.2 Utility Independence
An attribute is utility independent of others if the certainty equivalent of any
lottery over the attribute has the same value regardless of where the values
of the other attributes are xed.
()
=∀
∈≠
constant
,,
,
CE ydom
yj
i
yjfixed j
i
(3.37)
Consider the above decision situation with fuel economy and accelera-
tion. Let us say that the decision maker is asked to value a car that pro-
vides a 0–60 acceleration of 6 seconds, but the fuel economy is normally
distributed with mean 25 mpg and standard deviation 2 mpg. Assume
a risk-averse decision maker who, let us say, values the fuel economy at
23 ...
Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
and much more.
Start your free trial

You might also like

Lean Branding

Lean Branding

Laura Busche
A Structured Approach to Strategic Decisions

A Structured Approach to Strategic Decisions

Daniel Kahneman, Dan Lovallo, Olivier Sibony, Andrew Torrance, Christiana von Hippel

Publisher Resources

ISBN: 9781439882320