What is Info-Gaps definition of severe uncertainty?
Answer-7: The point to note here is that other than discoursing at length on the forbidding nature of the uncertainty that Info-Gap decision theory is designed for, the theory does not give the concept “severe uncertainty” a formal definition. Instead, it makes certain working assumptions regarding the modeling of conditions of severe uncertainty. Thus, one of its key assumptions is that — given the severe uncertainty — the estimate รป utilized by Info-Gap’s uncertainty model is of doubtful quality. In other words, it postulates that our estimate of the true value of the key parameter of interest is a wild guess and is likely to be substantially wrong. Of course, this working assumption regarding the meaning of “severe uncertainty” in the context of Info-Gap’s model is perfectly sensible so that it cannot be faulted.
