{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Ch15 - Ch15 Student 1 A probability distribution A is a way...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Ch15 Student: ___________________________________________________________________________ 1. A probability distribution A. is a way of dealing with uncertainty. B. lists all possible outcomes and the corresponding probabilities of occurrence. C. shows only the most likely outcome in an uncertain situation. D. both a and b E. both a and c 2. The variance of a probability distribution is used to measure risk because a higher variance is associated with 3. Risk exists when A. all possible outcomes are known but probabilities can't be assigned to the outcomes. B. all possible outcomes are known and probabilities can be assigned to each. C. all possible outcomes are known but only objective probabilities can be assigned to each. D. future events can influence the payoffs but the decision maker has some control over their probabilities. E. c and d 4. When a manager can list all outcomes and assign probabilities to each 5. Subjective probabilities are 6. Choosing the decision with the maximum possible payoff A. is the maximax rule. B. ignores possible bad outcomes. C. is a guide for decision making under uncertainty. D. all of the above E. none of the above
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
7. The maximin rule 8. Using the minimax regret rule the manager makes the decision 9. In making decisions under risk The next 7 questions refer to the following: A firm is considering two projects, A and B , with the following probability distributions for profit.
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern