Tag: Decision Theory
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Expected Value
Expected value, a cornerstone of statistics and probability, indicates the average outcome of repeated events. Despite its ubiquity in fields such as economics and decision-making, it doesn’t predict individual outcomes and can be skewed by outliers. Its broad applications necessitate considering ethical implications due to potential unequal impacts.
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Null Hypothesis
In statistical hypothesis testing, the null hypothesis asserts a lack of effect and serves as a baseline for evaluation. Specific tests are employed to assess evidence, leading to either the rejection or the failure to reject this initial assumption. This methodology is pivotal in both scientific inquiry and rational decision-making.