Some estimations of the minimal magnitudes of forbidden zones in experimental data

Harin, Alexander (2017): Some estimations of the minimal magnitudes of forbidden zones in experimental data.

Abstract

Suppose a random variable takes on values in an interval. The minimal distance between the expectation of the variable and the nearest boundary of the interval is considered in the present article. A question whether this distance can be neglected with respect to the standard deviation is analyzed as the main item. This minimal distance can determine the minimal magnitudes of non-zero forbidden zones and biases caused by noise for results of experiments. These non-zero forbidden zones and biases cause fundamental problems, especially in interpretations of experiments in behavioral economics and decision sciences.

• Item Type: MPRA Paper
• Language: English
• Keywords: utility theory; prospect theory; behavioral economics; decision sciences; probability; experiments; data; variance; expectation; noise
• Subjects: C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General; C - Mathematical and Quantitative Methods > C8 - Data Collection and Data Estimation Methodology ; Computer Programs > C81 - Methodology for Collecting, Estimating, and Organizing Microeconomic Data ; Data Access; C - Mathematical and Quantitative Methods > C9 - Design of Experiments; D - Microeconomics > D8 - Information, Knowledge, and Uncertainty; D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D81 - Criteria for Decision-Making under Risk and Uncertainty

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