Abstract
A new mathematical expectation formula with some hypotheses, notions and propositions was given to get rid of the challenge of St. Petersburg paradox and Pascal’s wager. Relevant results show that it is very effective to apply the model to solve the expected revenue problems containing random events with low probability but high revenue. This work also provides the probability theory with a more widely applied perspective in group decision-making.
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Foundation item: the Scientific Research Foundation of Hunan Education Department (No. 05C185)
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Liu, Dj., Huang, Tm. & Chen, Yb. An approach to resolving two paradoxes in probability theory. J. Shanghai Jiaotong Univ. (Sci.) 13, 362–365 (2008). https://doi.org/10.1007/s12204-008-0362-7
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DOI: https://doi.org/10.1007/s12204-008-0362-7
Key words
- conservative probability function
- conservation degree
- conservative mathematical expectation
- St. Petersburg paradox and Pascal’s wager
- convergence
- group decision-making