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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.


References in periodicals archive ?
The first part of the cyclist's certainty equivalent has not changed.
The solution of the team manager's maximization problem is deduced with the help of the certainty equivalent, the participation constraint, and the incentive constraint.
Under CRRA utility, the indirect utility is also of the power form, which permits using the certainty equivalent in Equation (12) in the computation of Equation (13).
Prior to the terminal set of nodes, the hedge fund value is the maximum of immediate exercise of the redemption option and the certainty equivalent.
Influences of Audit Partners' Risk Preferences on Client Retention Decisions We classified each partner as primarily risk seeking, risk averse, or risk neutral (coded +1, -1, and 0) as measured by their responses to the Certainty Equivalent litigation settlement risk gamble for the independent variable.
To examine the efficacy of this measure, we regressed the partners' responses to the Client Retention Judgment Scale on the dollar amounts each partner provided as the amount they would be willing to settle in the Certainty Effect-Variable Certainty Equivalent litigation scenario.
A dollar tax cut today reduces the certainty equivalent income by exactly R.
This expression for the certainty equivalent is well known and can be found enshrined in modern textbooks.
Stochastic Dominance and the Certainty Equivalent Interest Rate