Decision theory
Decision making under
different decision situations
Prof. Debmallya Chatterjee
1
Decision Theory
What is a decision ?
Risk?
How we decide ? What all we need to decide?
Can environm
Cranberries are one of just a handful of fruits that are native to North America,
before the Europeans arrived the Indians used them for food and medicine. The
cranberry vine is well suited to a harsh
The cost of producing power per kilowatt hour is a function of the load factor (given in %) and the cost of c
Load Factor Cost of Coal
84
14
81
16
73
22
74
24
67
20
87
29
77
26
76
15
69
29
82
24
90
25
I. After your PGDM postgraduation you decide to go for gambling. You visit a ca
Before you start betting, you watch 500 roulette games at the casino, and you
determine whether the roulette is fair i.
Exercises for Homework 1
1.12. How many different 7place codes for license plates are possible if the first 3
places are to be occupied by letters of Latin alphabet and the final 4 by numbers?
1.13.
1 the events that gave rise to journal entries
1. barbara thompson started pc depot by investing $65,000 capital and borrowed from bank $100,000 so her initial ba
2. rent expense for the month of sept
Months
July
August
September
October
November
December
Costs (in $ ) Volume
1400
1700
1500
1300
1500
1300
1000
1100
900
800
1200
700
SUMMARY OUTPUT
Regression Statistics
Multiple R
0.7401527457
R Squa
Assignment 1
1.1 Problem
Balance sheet of CHARLES COMPANY as of Dec 31
( All the values in $)
Assets
Liabilities and owners Equity
Current Assets
Cash
Current Liabilities

12,000
Inventory 
95,000
B
Assignment 1
Problem 2.1
a. Owners equity equals $55,000.
b. Liabilities equal $25,000.
c. Noncurrent assets equal $70,000.
d. Owners equity is $73,000.
Current assets $33,000 + Noncurrent assets $55,
Problem 51
company goods sold is 65% of sales
a
If revenues are recognized when sale is made
According to matching concept, expenses recognized in the same period when revenue should recogn
Revenue i
Assignment 3: Inequalities
Due: 8th October
Name: _
1.
Find the values of x for which 5 3x x + 1 . Working:
Answer: .
(Total 3 marks)
2.
Solve the inequality x 4 + Working:
2
3 < 0. x
Answer: . .
(Tot
Assignment 5: Complex Numbers: Solutions 2. (1 i)z = 1 3i 1 3i z= 1 i 1 3i 1 + i z= 1 i 1+ i z=2i
(M1) (M1) (A2) (M1) (M1) (A2)(C2)(C2)
OR Let z = x + iy (1 i)(x + iy) = 1 3i x + y i(x y) = 1 3i x + y
Assignment 5: Complex Numbers Due: 12th Novemeber 1. Let z = x + yi. Find the values of x and y if (1 i)z = 1 3i. Working:
Name: _
Answer: .
(Total 4 marks)
3.
Let z1 = (a)
6 i 2 , and z = 1 i. 2 2 .
Due: 7th September
Name: _
1.
Using the substitution u =
1 x + 1, or otherwise, find the integral 2
x
Working:
1 x + 1 dx. 2
Answer: .
(Total 4 marks)
2.
Find the real number k > 1 for which
1 + x1 d
Solutions
3 2 Given the matrix A = 1 0 find the values of the real number k for which det(A kI) = 0 1 0 where I = 0 1 .
(Total 4 marks)
1.
2.
det(A kI) = 0 3k 2 =0 1 k k 3k + 2 = 0 (k 2)(k 1) = 0 k
Assignment 4: Matrices
Due: 29nd October
Name:
_
1.
3 2 Given the matrix A = 1 0 find the values of the real number k for which det(A kI) = 0 1 0 where I = 0 1 .
Working:
Answer: .
(Total 4 marks)
2
Assignment 6, Sequences 1.
Due: 26th November
Name: _
The second term of an arithmetic sequence is 7. The sum of the first four terms of the arithmetic sequence is 12. Find the first term, a, and the
1.
The second term of an arithmetic sequence is 7. The sum of the first four terms of the arithmetic sequence is 12. Find the first term, a, and the common difference, d, of the sequence. Working:
Ans
Assignment 2: Triangles 1.
Due : 24th September
2
Name: _
The area of the triangle shown below is 2.21 cm . The length of the shortest side is x cm and the other two sides are 3x cm and (x + 3) cm.
x
1.
The area of the triangle shown below is 2.21 cm . The length of the shortest side is x cm and the other two sides are 3x cm and (x + 3) cm.
2
x
3x
x+3 (a) Using the formula for the area of the tria