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>This is a game theory problem, NOT a statistics problem. In my case the utility of losing -$100 is zero, the utility of gaining $100K is very positive, the uti
by bobsmooth 5y ago
>This is a game theory problem, NOT a statistics problem. In my case the utility of losing -$100 is zero, the utility of gaining $100K is very positive, the utility of missing out on the $100K is extremely negative.
Calculating utility, or the expected value, is entirely statistics.
- dheera 5y agoutility != "expected value" "expected value" != MY expectation utility != statistics on dollars
- mynameisvlad 5y agoJust because you think so strongly that your definition is correct does not make it fact. "Expected value" and its derivatives is a specific term, with a specific calculation. You can't just throw around words and expect others to understand you don't mean the actual definition when you say them. https://www.e-education.psu.edu/eme460/node/730 https://www.e-education.psu.edu/eme460/node/730
- dheera 5y agoI am not arguing over a definition, I'm just saying that the definition sucks and that GGGGGP was actually expecting the "expected value" which I wouldn't do in this case.