
106 Decision Based Design
where η is efficiency and x is the wind speed. One thousand realizations
of wind speed were generated for each location, and the corresponding
values of the efficiency were calculated using Equation 3.53. For each real-
ization the utility function value was calculated using the efficiency value.
Expected utility was then found by averaging the utility values for each loca-
tion. The expected utility values are 0.866 and 0.838 for the two locations,
and therefore location A should be chosen.
Problems and Exercises
1. What is a good decision? Give an example of a good decision that
you made in your life that resulted in a ...