Volume : IV, Issue : III, March - 2014

Subjective Probability and Expected Utility, A Stochastic Approximation Evaluation

Yuri Pavlov, Rumen Andreev

Abstract :

The topic of this article is stochastic algorithms for evaluation of the utility and subjective probability based on the decision maker’s preferences. The main direction of the presentation is toward development of mathematically grounded algorithms for subjective probability and expected utility evaluation as a function of both the probability and the rank of the alternative. The stochastic assessment is based on mathematically formulated axiomatic principles and stochastic procedures and on the utility theory without additivity. The uncertainty of the human preferences is eliminated as is typical for the stochastic programming. Numerical presentations are shown and discussed.

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Article: Download PDF   DOI : 10.36106/ijar  

Cite This Article:

Yuri Pavlov, Rumen Andreev Subjective Probability and Expected Utility, A Stochastic Approximation Evaluation Indian Journal of Applied Research, Vol.IV, Issue. III

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