About the Book
This book consists of articles from Wikia or other free sources online. Pages: 58. Chapters: Allais paradox, Bayes' theorem, Central limit theorem, Characteristic function, Classical interpretation of probability, Concrete illustration of the central limit theorem, Conditional expectation, Conditional independence, Conditional probability, Constant random variable, Continuous probability distribution, Continuous random variable, Convergence of random variables, Covariance, Cumulant, Cumulative distribution function, Discrete probability distribution, Empirical process, Event, Expected value, Graphical model, Independence, Independent and identically distributed random variables, Independent identically distributed, Information geometry, Inverse probability, Joint distribution, Kurtosis, Law of large numbers, Law of total probability, Littlewood's law, Luce's choice axiom, Marginal distribution, Markov chains, Mean difference, Method of moments, Normalizing constant, Normally distributed and uncorrelated does not imply independent, Point processes, Power law, Probability axioms, Probability density function, Probability interpretations, Probability mass function, Probability space, Quantile, Random variable, Sample space, Skewed distribution, Statistical independence, Uncorrelated, Unimodal function, Variance, Vysochanskii-Petunin inequality. Excerpt: The Allais paradox, more neutrally described as the Allais problem, is a choice problem designed by Maurice Allais to show an inconsistency of actual observed choices with the predictions of expected utility theory. The problem arises when comparing participants' choices in two different experiments, each of which consists of a choice between two gambles, A and B. The payoffs for each gamble in each experiment are as follows: Presented with the choice between 1A and 1B, most people choose 1A. Presented with the choice between 2A and 2B, most people choose 2B. This is inconsistent with expected utility.The point is...
