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lectures/util_rand_resp.md

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@@ -175,13 +175,16 @@ This measure is just the first term in {eq}`eq:util-rand-seven-a`, i.e., the pro
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### Truth border
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Key assumptions that underlie a randomized response technique for estimating the fraction of a population that belongs to $A$ are:
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Key assumptions that underlie a randomized response technique for estimating the fraction of a population that belongs to $A$ are
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- **Assumption 1**: Respondents feel discomfort from being thought of as belonging to $A$.
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```{prf:assumption}
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- **Assumption 2**: Respondents prefer to answer questions truthfully than to lie, so long as the cost of doing so is not too high.
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- *Assumption 1*: Respondents feel discomfort from being thought of as belonging to $A$.
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- *Assumption 2*: Respondents prefer to answer questions truthfully than to lie, so long as the cost of doing so is not too high.
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- The cost is taken to be the discomfort in 1.
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```
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Let $r_i$ denote individual $i$'s response to the randomized question.
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- The optimal model design is obtained at the point where the truth border touches the lowest possible iso-variance curve.
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A practical implication of the analysis of {cite}`ljungqvist1993unified` is that uncertainty about respondents' demands for privacy can be acknowledged by **choosing $\text{Pr}(A|\text{yes})$ and $\text{Pr}(A|\text{no})$ sufficiently close to each other**.
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A practical implication of the analysis of {cite}`ljungqvist1993unified` is that uncertainty about respondents' demands for privacy can be acknowledged by *choosing $\text{Pr}(A|\text{yes})$ and $\text{Pr}(A|\text{no})$ sufficiently close to each other*.

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