Slides02-2010 - Outline Introduction Decisions Under Risk...

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Outline Introduction Decisions Under Risk: Fact or Fiction An Overview of Decision Making Under Risk and Uncertainty: Lecture II Charles B. Moss May 17, 2010 Charles B. Moss An Overview of Decision Making Under Risk and Uncertainty:
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Outline Introduction Decisions Under Risk: Fact or Fiction Introduction Introduction Fertilizer Case Decision Criteria Decisions Under Risk: Fact or Fiction Charles B. Moss An Overview of Decision Making Under Risk and Uncertainty:
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Outline Introduction Decisions Under Risk: Fact or Fiction Introduction Fertilizer Case Decision Criteria Economic Decisions I Economics is the study of choices I Consumer demand - the choice of goods and services I Production - choices of inputs used to create outputs I Students of economics realize that many of these choices cannot be explained by simplistic models. I Property rights I Government barriers I Imperfect or incomplete information Charles B. Moss An Overview of Decision Making Under Risk and Uncertainty:
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Outline Introduction Decisions Under Risk: Fact or Fiction Introduction Fertilizer Case Decision Criteria Formulating the Risk Problem I Agreement on terminology I A basic assumption is there exists at least two actions a 1 and a 2 . I The outcome of these actions will be aFected by a random event E . I One of the things that makes an event random is that it has mo rethanoneposs ib leva lue A or B .
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This note was uploaded on 07/15/2011 for the course AEB 6182 taught by Professor Weldon during the Fall '08 term at University of Florida.

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Slides02-2010 - Outline Introduction Decisions Under Risk...

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