bjmath Utility Theory Q&As

Much of the following information can be found on within the bjmath website. However, below is a summary of the most asked questions and answers relating to utility theory. If you wish to include more questions, please let me know.

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1. Value and Functions - Worth and Relationships.
   1. What does expected value mean?
   2. What does value mean?
   3. What is an argument?
   4. What is a function?
   5. What is an independent variable?
   6. What is a dependent variable?

2. Utility - Value as determined by individual preference.
   1. What does 'Utility' mean?
   2. What is a Utility Function? [Lefty]

3. Kelly Criterion
   1. What is the Kelly Criterion?
   2. What is the maximum expected long run growth rate of one's capital?
   3. What is this thing called Kelly?
   4. What are the Kelly strategy's "special" qualities?
   5. What are the disadvantages of the Kelly strategy?
   6. What is the Kelly bet size?

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