The Difference Between the Expected Value of an Optimal Strategy

question 3

Multiple Choice

The difference between the expected value of an optimal strategy based on sample information and the "best" expected value without any sample information is called the _____ information.

• A) optima
• B) expected value of sample
• C) expected value of perfect
• D) efficiency of

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Definitions:

Probability

Probability is a measure or estimation of how likely it is that an event will occur, expressed as a number between 0 and 1.

Utility

In economics, a measure of satisfaction or happiness that consumers derive from consuming goods and services.

Von Neumann-Morgenstern

A theory designed to understand the utility of outcomes in strategic games, emphasizing the mathematical expected utility.

Expected Utility

A theory in economics that calculates the utility of an outcome based on its probability and the utility of the outcomes.