What techniques are used to solve decision-making problems under uncertainty? Which technique results in an optimistic decision? Which technique results in a pessimistic decision?
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What techniques are used to solve decision-making problems under uncertainty? Which technique results in an optimistic decision? Which technique results in a pessimistic decision?
b) What is sensitivity analysis? Why should sensitivity analysis consider all possible consequences
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- Describe and use techniques that apply to decision making under uncertainty.Safety and risk are subjective concepts which depend on the followingfactors, except a. voluntary vs. involuntary risk b. occasional vs. frequent accidentsc. delayed vs. immediate risk d. expected probability What is the answer ?The application which provides a way of revising conditional probabilities by using available information and provisions for revising conditional probabilities with other information that is useful for management decision making is called? Select one: a. Bayes’ theorem. b. overinvolvement ratios. c. probability rules. d. empirical formula.
- In a repeated decision for which the present value of the benefits of cheating are greater than the present value of the costs of cheating, A. deciding to cheat is a value-maximizing decision. B.deciding to cheat is never a value-maximizing decision. C.None of the aboveNeuroeconomics attributes time-inconsistency to (A) high levels of the oxytocin hormone; (B) the quasi-hyperbolic discounting of future consumption; (C) the two distinct systems (spontaneous System 1 and calculating System 2)of decision making; (D) risk aversion.Discuss how one is able to describe the riskiness of the decision-taker’s situation in ways which are intuitively appealing and analytically tractable.
- John wants to buy a used car. He knows that there are two types of car in the market, plums and lemons. Lemons are worse quality cars and are more likely to break down than plums. John is willing to pay £10, 000 for a plum and £2, 000 for a lemon. Unfortunately, however, he cannot distinguish between the two types. Sellers can offer a warranty that would cover the full cost of any repair needed by the car for y ∗ years. Considering the type and likelihood of problems their cars can have, owners of plums estimate that y years of guarantee would cost them 1000y, owners of lemons estimate that the cost would be 2000y. John knows these estimates and decides to offer £10, 000 if a car comes with y ∗ years of warranty, £2, 000 if a car comes without warranty. For which values of y ∗ is there a separating equilibrium where only owners of plums are willing to offer the y ∗ -years warranty? Clearly explain your reasoning.Assumptions of rationality are violated because Choose one: A. both low-probability events and high-probability events are underanticipated. B. low-probability events are overanticipated whereas high-probability events are underanticipated. C. low-probability events are underanticipated whereas high-probability events are overanticipated. D. both low-probability events and high-probability events are overanticipated.QUESTION 13 The size of the uninsured and underinsured population in the United States has become an indication of the access problems in the US healthcare system.TrueFalse QUESTION 14 If the expected age of death for a male aged 20 is 75, then a 20-year-old man who dies is considered to have lost how many years of life? A. 20 years of life B. 75 years of life C. 55 years of life D. None of these QUESTION 15 Why is survival time considered to be a good indicator of health status? A. It measures health outcomes as compared to costs B. It places an emphasis on the time spent(duration) in a specific health state C. The measure accounts for mortality rates D. It measures outcomes or health state at a given point in time
- Compare and contrast two quantitative tools for decision-making in conditions of certaintyIf the benefits of a given choice option are delayed further into the future(all other relevant factors remaining constant),then the present value of the option will a) increase b) decrease c) remain the same d) ( unknow, not enough information to say).If it is impossible to acquire sufficient information to make an informed decision, what can be the least risky option to take? Using gut feelings Not doing anything Do something because something is always better than nothing. Let someone else make the decision.