3325p11hs a decision making tools

Returns no no is it ethical not to take is action

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Unformatted text preview: returns? No No Is it ethical not to take Is action? (Weigh the harm to shareholders verses benefits to other stakeholders) stakeholders) Action outcome Yes Do it No Don’t Don’t do it do Yes Don’t Don’t do it do No Do it, Do but notify appropriate parties parties Don’t Don’t do it do A – 32 The Poker Design Process If T. J. folds, The money already in the pot EMV = (.80)($99,000) = $79,200 If T. J. calls, The chance T.J. will call EMV = .20[(.45)($853,000) – Phillips’s bet of $422,000] = .20[$383,850 – $422,000] = .20[–$38,150] = –$7,630 Overall EMV = $79,200 – $7,630 = $71,750 A – 33 The Poker Design Process The money alreadys If T. J. folds, at i thi hthefpot st indicate in e average 70 , th of $71,5 EMV = (.80)($99,000) l l EM V ny times llips’s a a The over re to be made m ough Phi analysis n th =ecision we $79,200 is ve d large. E rk out, h o be did not w T.J. will call f would nce chance p yof If T.aJ. calls,this instaThe orrect one. in decision ure was the c d EMV p=o.20[(.45)($853,000) – Phillips’s bet of nd r c e a $422,000] = .20[$383,850 – $422,000] = .20[–$38,150] = –$7,630 Overall EMV = $79,200 – $7,630 = $71,750 A – 34...
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