cs-121 — The Umbrella Decision

FieldValue
idcs-121
difficultyBeginner
topicsexpected value, payoffs
lecturelecture-31
estimated time5-minute attempt + 10-minute discussion
prerequisitesnone
objectivestate inputs, outputs, and assumptions, then solve a small instance by hand
solutionheld by the instructor; discussed after the attempt

Problem

Carry an umbrella or not under a 30% rain chance with asymmetric costs. Payoff table, expected values, and why the bigger loss dominates.

Your deliverable is the stated assumptions, the expected value computed for the worked instance, the hidden assumption named, and one contested case. If the problem is ambiguous anywhere, state the assumption you are making and carry on — a stated assumption is part of a good answer.

Examples

Solve for the worked instance first. Then ask what would change if one number, name, or condition were replaced by something stranger.

What to notice

Discussion starter

After the solution is revealed, the class spends five minutes on this prompt: "Propose one extra rule that would change the verdict — is it an improvement?"

Constraints and assumptions

Hints and extension