Week 2 - Lecture 2 - Nuclear Safety Science II

Question 1

Willingness-to-pay

Answer 1

The reduction in the expected number of fatalities divided by the investment

E.g. Screening of Dutch women once in 2 years on breast cancer

Question 2

States of nature

Answer 2

There are many possible scenarios; the future is uncertain

Question 3

Laplace Criterion

Decision tree

Answer 3

Take the decision which maximises the average payoff

Question 4

Maximin Criterion (“pessimistic”)

Decision tree

Answer 4

Take the decision which maximises the minimum payoff

Question 5

Maximax Criterion (“optimistic”)

Decision tree

Answer 5

Take the decision which maximises the maximum payoff

Question 6

Expected Value Criterion

Decision tree

Answer 6

Take the decision which maximises the expected payoff