PS 16 - Risk and Uncertainty

# PS 16 - Risk and Uncertainty - will be read from top to...

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IE 150 Problem Set 16 Risk and Uncertainty Instructions:  Write/Type/Print your answers on yellow pad or bond paper (NO A4’s). Use a different sheet per  problem.  Use phrases  to describe what you are doing. Do not present it as just a series of equations and  numbers.  Label each step. Ex: “Step 1: Set-up the Total Revenue Equation”, “Step 4: Solve for the NPV”.  Box the final answers.  Use clear formatting: Indent at each step. Show your answers in just 1 column. (The problem set
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Unformatted text preview: will be read from top to bottom, and not top bottom diagonal right bottom.) Problem 1: a) What is the difference between risk and uncertainty? Risk has probabilities, Uncertainty does not (totally unknown). Problem 2: Name the advantages and disadvantages of: a) Spider Plots b) Combination of Factors c) OM-LP d) Reduced Useful Lives e) Increased MARR...
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