Definition:Objective Unknown

Definition

An objective unknown is an event which has a well-defined objective probability of occurring.

Two objective unknowns with the same probability are equivalent in the field of decision theory.

An objective unknown is appropriately modelled by means of a probability model.

Also known as

Some sources refer to an objective unknown as a risk.

A gamble on an objective unknown can be seen referred to as a roulette lottery.

Examples

Examples of objective unknowns include:

• The fall of a coin in a game of coin-tossing

• The number selected by the spin of a roulette wheel (hence the term roulette lottery)

• The blind selection of a ball from an urn.

Also see

• Definition:Subjective Unknown

Sources

• 1991: Roger B. Myerson: Game Theory ... (previous) ... (next): $1.2$ Basic Concepts of Decision Theory