Loss function: Difference between revisions

Revision as of 21:18, 3 December 2024

Revision as of 15:04, 20 December 2024

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===Regret===

{{main|Regret (decision theory)}}

[[Leonard J. Savage]] argued that using non-Bayesian methods such as [[minimax]], the loss function should be based on the idea of ''[[regret (decision theory)|regret]]'', i.e., the loss associated with a decision should be the difference between the consequences of the best decision that could have been made hadunder thecircumstances underlying circumstanceshad been known and the decision that was in fact taken before they were known.

===Quadratic loss function===