Questions tagged [probability]

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

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Multinominal logit regressions - marginal effects

I am running a multinominal logit regression with five dependent variable categories: "I disagree fully", "I disagree", "Neutral", "I agree" and "I agree ...
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Interpretation of multinominal logit regression (Stata)

I have a few questions about mlogit. I have a set of independent variables and a categorical, but ordered, dependent variable with three categories (Disagree, Neutral and Agree). The assumptions for ...
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Question on the choice of boundary in the CUSUM test when we make some resampling

Question on the choice of boundary in the CUSUM test when we make some resampling We are considering to make a CUSUM test for some economical time series $𝑋=(𝑥_1,..,x_n)$. Suppose 𝑋 contains many ...
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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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Find all of the Pure and Mixed Strategy Nash Equilibria [closed]

When I do the basic calculations for mixed probability, I get that the Column player always plays B. However, I am getting a negative probability for the row. Any help is appreciated.
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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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Effort setting game - no idea where to start

I have been working on this problem for a few days but I am completely lost on how to start. Any suggestions, comments, hints are greatly appreciated. Here is a scenario: Participants are competing ...
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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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Does the Independence Axiom Require Statistical Independence?

First: Given this definition of the Independence Axiom, If for all $P$, $P'$, $P''$ in the set of lotteries over outcome space $X$, when: $P$ preferred to $P'$ $\implies$ $aP + (1-a)P''$ preferred to ...
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Can't solve this matrix for Nash Equilibrium?

So, I have the following 9 by 9 probability matrix. I want to solve it for a nash equilibrium. https://docs.google.com/spreadsheets/d/16Y1FqxRIAHsHpgEz1ckxDt2sEOInOG3zz_wU8kBHvB4/edit?usp=sharing For ...
Setup Say you have two types of workers, high and low. The share of low-types among the unemployed population is $P$. I want to find the job-finding rate for these types. Matching Matching is ...