# Questions tagged [probability]

A branch of statistics that studies the likelihood of uncertain events occurring.

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### Olivier Gossner - Secure Protocols or How Communication Generates Correlation

The paper of Olivier Gossner in Security Protocols in 1998 has some definitions that confuse me too much. I will cite here these definitions and my questions and I hope someone is familiar with these ...
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### Mean Field/Differential Game and Measurability

Consider the following scenario. There is a continuum of players in a population, with population measure normalized to $1$. Each player has a type $\theta \in [0,1]$ and we suppose that $\theta$ is ...
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### When to invest into additional products?

This is a very applied question so I hope it's the correct adress here for it: I'm running a small entertaining business for virtual reality experiences. Investment was about 120 k. I now build it ...
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### How to determine the default probability of a county in a bond that is not in its native currency?

Consider the following case: Country P uses the currency Euro and gives p percent interest on a one year bond issued in Euro. Country Q uses the currency TL and gives q percent interest on a one ...
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### Is lowered probability of spending equals savings? [closed]

This a really basic one and logic says: Yes given enough iterations. But I am looking for validation Situation: There is a 7% probability of expenses of 1000 occurring. I have a tool that then ...
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### If an item is rarer than others, is it that much more valuable?

Say I am selling a pack of trading cards, and there are 5 cards inside. Four of these cards are basic cards, but the last card has a 1:10 chance of being a special insert card. Does the fact that the ...
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### How to have same utility function for two persons?

I have a question regarding utility functions: Utility can be defined as follows: $U=1+e^{\frac{x}{RT}}$ U:Utility x: What we want to find the utility for (Certain equivalent) RT: Risk tolerance ...
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### Investment and probability

Being a mathematician, I am familiar with probability calculations, but I need to ask a question related to investments and probability, and how this is handled seen from an economics view. Given a ...
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### second order stochastic dominance without the same mean

Let $F$ and $G$ be two distributions with the same mean. $F$ is said to second order stochastically dominate (SOSD) $G$ if $$\int u(x)\mathrm dF(x)\ge \int u(x)\mathrm dG(x)\tag{1}$$ for all ...