10 - Rational Decisions

Question 1

What does ‘A > B’ mean?

Answer 1

A preferred over B

Question 2

What does ‘A ~ B’ mean?

Answer 2

Either A or B is fine

Question 3

Transitivity

Answer 3

(A > B) & (B > C) => (A > C)

Question 4

Decision Nodes in Decision Trees

Answer 4

Rectangles

Question 5

Utility Nodes in Decision Trees

Answer 5

Diamonds

Question 6

Chance Nodes in Decision Trees

Answer 6

Ovals

Question 7

Chance Nodes represent ________.

Answer 7

RANDOM VARIABLES

Question 8

Utility nodes represent ________.

Answer 8

UTILITY VALUE OF EACH BRANCH

Question 9

Decision nodes have branches for each ________.

Answer 9

ALTERNATIVE DECISION

Question 10

Disadvantage of decision trees

Answer 10

Can become exponentially complex with increasing number of decisions

Question 11

Advantage of decision trees

Answer 11

General method with explicit encoding of utilities

Question 12

No Forgetting Assumption

Answer 12

All past decisions and revealed variables are available at the current decision

Question 13

When is an information link fundamental?

Answer 13

If its removal would change the partial ordering.

Question 14

Which action is selected by a rational agent?

Answer 14

The action that maximizes the EXPECTED UTILITY.

Question 15

________ helps making unambigous decisions.

Answer 15

STOCHASTIC DOMINANCE