Explain the purpose of starting out with such an unrealistic decision rule. Describe how the process will unfold from that point.

Answers

The purpose of starting out with an unrealistic decision rule is to provide a starting point from which the decision rule can be improved. This initial decision rule may be based on experience, intuition, or simply guessing. The process of improving the decision rule, known as rule adaptation, begins with observing the outcomes of decisions made using the initial, unrealistic decision rule. This observed performance is used to create a better decision rule, which is then tested and observed again in the same manner. This process continues until the decision rule performance is satisfactory. Each iteration of rule adaptation will use the decision rules from the previous iteration as its starting point, gradually refining the decision rule and attempting to make it more accurate.

Answered by jamiedavis

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