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Optimum strategy in risky challenge model

Kulikowski R.

Systems Science

2001

Vol. 27, nr 1

39-48

The paper deals with the modeling of challenge systems which exist in education, science, sport, business, etc. The model employs two scenarios outcome: the success, followed by award and zero award failure with given probabilities. A utility function, which takes into account the risk and award has been introduced and the optimum utility maximizing strategy has been derived. An application, with numerical example, in choosing the optimum education is also included.