r*******n
发帖数: 60 | 1 If you get to throw the dice once and get paid the face value, how much
would you pay for the game?
slightly less than 3.5? by how much? |
b****d
发帖数: 1311 | 2 几何平均？２.９９４
【在 r*******n 的大作中提到】
: If you get to throw the dice once and get paid the face value, how much
: would you pay for the game?
: slightly less than 3.5? by how much?
|
W*******d
发帖数: 63 | 3 The price depends on your risk preference.
If you are risk neutral, you would pay 3.5.
If you are risk averse, you would pay less than 3.5. How much less than 3.5
depends on the degree of risk aversion. You may use utility of money model
to calculate the value of game.
See more at:
http://en.wikipedia.org/wiki/Risk_aversion
【在 r*******n 的大作中提到】
: If you get to throw the dice once and get paid the face value, how much
: would you pay for the game?
: slightly less than 3.5? by how much?
|
r*******n
发帖数: 60 | 4 en, niu, i thought it can be quantified as a unique solution. thx lah |
z*x
发帖数: 62 | 5 Very good!
This is actually a St Petersburg paradox question which goes against
traditional EMV theory.
5
【在 W*******d 的大作中提到】
: The price depends on your risk preference.
: If you are risk neutral, you would pay 3.5.
: If you are risk averse, you would pay less than 3.5. How much less than 3.5
: depends on the degree of risk aversion. You may use utility of money model
: to calculate the value of game.
: See more at:
: http://en.wikipedia.org/wiki/Risk_aversion
|
