|
KU ScholarWorks >
School of Business >
School of Business Articles >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/1808/758
|
|
View usage statistics
|
Full metadata record
| DC Field | Value | Language |
|---|
| dc.contributor.author | Giang, Phan H. | - |
| dc.contributor.author | Shenoy, Prakash P. | - |
| dc.date.accessioned | 2005-10-27T21:13:11Z | - |
| dc.date.available | 2005-10-27T21:13:11Z | - |
| dc.date.issued | 2005-07 | - |
| dc.identifier.citation | Giang, P. H. and Shenoy, P. P., "Decision making on the sole basis of statistical likelihood," Artificial Intelligence, Vol. 165, No. 2, 2005, pp. 137--163 | en |
| dc.identifier.issn | 0004-3702 | - |
| dc.identifier.uri | http://hdl.handle.net/1808/758 | - |
| dc.description.abstract | This paper presents a new axiomatic decision theory for choice under uncertainty. Unlike Bayesian decision theory where uncertainty is represented by a probability function, in our theory, uncertainty is given in the form of a likelihood function extracted from statistical evidence. The likelihood principle in statistics stipulates that likelihood functions encode all relevant information obtainable from experimental data. In particular, we do not assume any knowledge of prior probabilities. Consequently, a Bayesian conversion of likelihoods to posterior probabilities is not possible in our setting. We make an assumption that defines the likelihood of a set of hypotheses as the maximum likelihood over the elements of the set. We justify an axiomatic system similar to that used by von Neumann and Morgenstern for choice under risk. Our main result is a representation theorem using the new concept of binary utility. We also discuss how ambiguity attitudes are handled. Applied to the statistical inference problem, our theory suggests a novel solution. The results in this paper could be useful for probabilistic model selection. | en |
| dc.format.extent | 508024 bytes | - |
| dc.format.mimetype | application/pdf | - |
| dc.language.iso | en_US | - |
| dc.publisher | Elsevier Science Publishers B. V. | en |
| dc.subject | Decision theory | en |
| dc.subject | Likelihood | en |
| dc.subject | Statistical inference | en |
| dc.subject | Ambiguity attitude | en |
| dc.title | Decision making on the sole basis of statistical likelihood | en |
| dc.type | Article | en |
| Appears in Collections: | School of Business Articles
|
Items in KU ScholarWorks are protected by copyright, with all rights reserved, unless otherwise indicated.
|
top