exam 2 notes

exam 2 notes - Exam 2 Choice process individual decision...

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Exam 2 Choice process individual decision making Expected value EV= P: probability likelihood of future events occurring p=(01,)) Must know how to draw a decision tree and make a decision based on a the decision tree Normative model how to do something, how to behave in order to achieve a goal; give advice Descriptive models what people do, predict behavior A rational choice model is a normative model that tells you how to make a choice decision. But it also has descriptive uses and be used to predict behavior Aggregation when the effect of random errors is zero. A rational choice model sometimes does a relatively good job to predict average group behavior rather than indvidiual behavior because irrational elements in individual behavior are hard to predict, but irrational elements in group behavior are random, so they are cancled out. When the model is applied to he public (groups) it is called aggregation Subjective expected utility models
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This note was uploaded on 02/07/2011 for the course COMM 402 taught by Professor Hample during the Spring '10 term at Maryland.

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exam 2 notes - Exam 2 Choice process individual decision...

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