the probabilities of phenomena is unknown,they must be intaken
for equalthe expected value of the strategies
The chosen strategy is a strategy with the highest expected value, subject to equal probabilities
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the expected value of the strategies
The chosen strategy is a strategy with the highest expected value, subject to equal probabilities
The result of the assumption of equal probabilities for each state of the economy is a decision in a situation of risk
What criterion is the most suitable?
The choice often depends on
personal reasons!
Other methods of evoidance of uncertainty
However, in some time the law of diminishing marginal utility will occur