So how do you actually use probability to make decisions? There’s a well-established decision theory that takes probabilities as inputs, and produces a decision in some situation (eg, a bet). It will (often) produce different decisions when given 1⁄2 versus 1⁄3 as the probability of Heads. Which of these two decisions should you act on?
So how do you actually use probability to make decisions? There’s a well-established decision theory that takes probabilities as inputs, and produces a decision in some situation (eg, a bet). It will (often) produce different decisions when given 1⁄2 versus 1⁄3 as the probability of Heads. Which of these two decisions should you act on?