Slide 1 1 Economics 331b Treatment of Uncertainty in Economics (II) Slide 2 The payoff matrix (in utility units) 2 Slide 3 Optimal policy with learn then act 3 Expected loss…

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* Economics 331b Treatment of Uncertainty in Economics (II) The payoff matrix (in utility units) * Optimal policy with learn then act * Expected loss = 90% x 0 + 10% x -1…

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* Economics 331b Treatment of Uncertainty in Economics (II) The payoff matrix (in utility units) * Optimal policy with learn then act * Expected loss = 90% x 0 + 10% x -1…