Suppose s unknown, and has utility g(9- a, Y), where all second partial derivatives of g exist and Y is an unknown random variable. For a close to 9, heuristically show that the implied loss for...


Suppose

s unknown, and

has utility g(9- a, Y), where all second partial derivatives of g exist and Y is an unknown random variable. For a close to 9, heuristically show that the implied loss for decision making can be considered to be a shifted quadratic loss of the form





May 04, 2022
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