Certainty

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Certainty

 

a term used in probability theory, logic, epistemology, and law (theory of legal proof). In philosophical and logical-methodological investigations it is most frequently used to characterize knowledge that is valid, conclusive, or indisputable and also as a synonym for truth. In experimental natural science the term “certainty” frequently designates events and judgments that are regarded as empirically confirmed by special experiments or, more broadly, by the social and productive practice of men.

The term acquires a somewhat specialized meaning in probability theory. In so-called subjective, or personal, probability, certainty is most frequently interpreted as a concept reflecting the subject’s confidence in the correctness of his evaluation of the probability that a particular event will occur. From this point of view certainty also expresses the extent of a given individual’s knowledge about the conditions and factors contributing to or counteracting the occurrence of events. In this sense, with the exception of extremely idealized or oversimplified cases, certainty includes a considerable element of uncertainty, inasmuch as exhaustive knowledge about such conditions and factors is practically unobtainable.

A. I. RAKITOV

References in periodicals archive ?
In separate regressions of Task-5 and -10 PR-equivalents on gender, outcome, outcome improvement, the lottery certainty equivalent, self-rank, and a task-order dummy, the residual gender differences are negative and insignificant (b = -0.
In the "Main Assumptions, Risk Management Constraints, and Contract Valuation" section the power (isoelastic) utility function is introduced in Equation (14) and conversely the certainty equivalent CE in Equation (15).
First of all, the introduction of doping changes the athlete's certainty equivalent to
3, the following equilibrium values of the quantity, insurance premium, and certainty equivalent can be derived respectively as follows (12):
T-1,j] to express the certainty equivalent of the hedge fund investment at node (T - 1, j), so that the investor is indifferent between staying in the fund at node (T - 1, j) and exchanging for cash equal to [H.
The partners' mean response to the Certainty Equivalent litigation scenario, i.
Thus, the Life-Cycle theory is reexamined, incorporating the uncertain rates of return into the utility function and the budget constraint in the form of certainty equivalent rates of return, Et.
We find that for the "moderately" risk-averse retiree, the certainty equivalent of the 100 percent stock allocation is substantially greater than the certainty equivalent of the life cycle allocation--$584,000 compared to $403,000.
In the process, they are replacing the uncertain expected cash flows with the certainty equivalent cashflows, using a risk adjustment process akin to the one used to adjust discount rates.
i], the certainty equivalent associated with his next best employment opportunity, i.
Use of (1), (5), (4a) and (5a) yields the following expression for the certainty equivalent consumption, [Mathematical Expression Omitted]: