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HomeMIT IDS.333 Risk and Decision Analysis, Fall 2021Unit 10: Utility Analysis and Multidimensional Evaluation, Video 1: Is Optimization Possible?

Unit 10: Utility Analysis and Multidimensional Evaluation, Video 1: Is Optimization Possible?

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Valuation of distributions of outcomes involves risk-reward trade-offs between average and extreme performance. As these trade-offs are generally subjective, optimization is not meaningful.