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Unformatted text preview: etworks, water, and other infrastructure.
• Games, such as baseball, gambling, and lotteries: Many games involve complex calculations with probabilities. For example, a professional baseball pitcher’s choice of pitch
has a complex interplay with the anticipation of the batter. For another example, computer
rankings of sports teams based on win-loss records is a subject of interesting modeling.
• Commerce, such as online auctions: Sellers post items online auction sites, setting initial
prices and possibly hidden reserve prices, without complete knowledge of the total demand
for the objects sold. 1.1. EMBRACING UNCERTAINTY 5 • Online search and advertising: Search engines decide which webpages and which advertisements to display in response to queuries, without knowing precisely what the viewer is
• Personal ﬁnancial decisions: Individuals make decisions about major purchases, investments, and insurance, in the presence of uncertainty.
• Personal lifestyle decisions: Individuals make decisions about diet, exercise, studying for
exams, investing in personal relationships, all in the face of uncertainty...
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- Spring '08
- The Land