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Questions and Answers
What does the set X represent?
What does the set X represent?
- A set of all possible outcomes of a lottery
- A set of worst to best outcomes of a prospect
- A set of probability distributions for a gamble
- A set of all possible wealth levels of an agent (correct)
What is the condition for the probabilities of a lottery?
What is the condition for the probabilities of a lottery?
- ∑𝑖𝑖=1 𝑛𝑛 𝑝𝑝𝑖𝑖 = 1 (correct)
- ∑𝑖𝑖=1 𝑛𝑛 𝑝𝑝𝑖𝑖 ≤ 0
- ∑𝑖𝑖=1 𝑛𝑛 𝑝𝑝𝑖𝑖 < 1
- ∑𝑖𝑖=1 𝑛𝑛 𝑝𝑝𝑖𝑖 > 1
What is the notation for a lottery?
What is the notation for a lottery?
- 𝐿𝐿 = (𝑥𝑥1, 𝑝𝑝1; 𝑥𝑥2, 𝑝𝑝2; …. ; 𝑥𝑥𝑛𝑛, 𝑝𝑝𝑛𝑛/2)
- 𝐿𝐿 = (𝑥𝑥1, 𝑝𝑝1; 𝑥𝑥2, 𝑝𝑝2; …. ; 𝑥𝑥𝑛𝑛, 𝑝𝑝𝑛𝑛) (correct)
- 𝐿𝐿 = (𝑥𝑥1, 𝑝𝑝1; 𝑥𝑥2, 𝑝𝑝2; …. ; 𝑥𝑥𝑛𝑛, 𝑝𝑝𝑛𝑛+1)
- 𝐿𝐿 = (𝑥𝑥1, 𝑝𝑝1; 𝑥𝑥2, 𝑝𝑝2; …. ; 𝑥𝑥𝑛𝑛, 𝑝𝑝𝑛𝑛-1)
What is the ordering of the outcomes in the set X?
What is the ordering of the outcomes in the set X?
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What is the relationship between the outcomes in the set X?
What is the relationship between the outcomes in the set X?
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