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Loss function and Risk neutral preferences

Shortcuts: Differences, Similarities, Jaccard Similarity Coefficient, References.

Difference between Loss function and Risk neutral preferences

Loss function vs. Risk neutral preferences

In mathematical optimization, statistics, econometrics, decision theory, machine learning and computational neuroscience, a loss function or cost function is a function that maps an event or values of one or more variables onto a real number intuitively representing some "cost" associated with the event. In economics and finance, risk neutral preferences are preferences that are neither risk averse nor risk seeking.

Similarities between Loss function and Risk neutral preferences

Loss function and Risk neutral preferences have 5 things in common (in Unionpedia): Economics, Expected utility hypothesis, Expected value, Risk aversion, Risk-seeking.

Economics

Economics is the social science that studies the production, distribution, and consumption of goods and services.

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Expected utility hypothesis

In economics, game theory, and decision theory the expected utility hypothesis, concerning people's preferences with regard to choices that have uncertain outcomes (gambles), states that if specific axioms are satisfied, the subjective value associated with an individual's gamble is the statistical expectation of that individual's valuations of the outcomes of that gamble.

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Expected value

In probability theory, the expected value of a random variable, intuitively, is the long-run average value of repetitions of the experiment it represents.

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Risk aversion

In economics and finance, risk aversion is the behavior of humans (especially consumers and investors), when exposed to uncertainty, in attempting to lower that uncertainty.

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Risk-seeking

In economics and finance, a risk-seeker or risk-lover is a person who has a preference for risk.

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The list above answers the following questions

Loss function and Risk neutral preferences Comparison

Loss function has 80 relations, while Risk neutral preferences has 17. As they have in common 5, the Jaccard index is 5.15% = 5 / (80 + 17).

References

This article shows the relationship between Loss function and Risk neutral preferences. To access each article from which the information was extracted, please visit:

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