Decision Making Under Uncertainty: Cases When We Only Know an Upper Bound or a Lower Bound

Authors

Toshiki Kamio, The University of Texas at El PasoFollow
Gavin Baechle, The University of Texas at El PasoFollow
Vladik Kreinovich, The University of Texas at El PasoFollow

Publication Date

11-1-2021

Comments

Technical Report: UTEP-CS-21-94

Abstract

In situations when we have a perfect knowledge about the outcomes of several situations, a natural idea is to select the best of these situations. For example, among different investments, we should select the one with the largest gain. In practice, however, we rarely know the exact consequences of each action. In some cases, we know the lower and upper bounds on the corresponding gain. It has been proven that in such cases, an appropriate decision is to use Hurwicz optimism-pessimism criterion. In this paper, we extend the corresponding results to the cases when we only know an upper bound or a lower bound.