TAILIEUCHUNG - Lecture Managerial economics (9th edition): Chapter 15A – Thomas, Maurice

Chapter 15 - Decisions under risk and uncertainty. When managers make choices or decisions under risk or uncertainty, they must somehow incorporate this risk into their decision-making process. This chapter presented some basic rules for managers to help them make decisions under conditions of risk and uncertainty. | Chapter 15 Decisions Under Risk and Uncertainty Risk vs. Uncertainty Risk Must make a decision for which the outcome is not known with certainty Can list all possible outcomes & assign probabilities to the outcomes Uncertainty Cannot list all possible outcomes Cannot assign probabilities to the outcomes 15- Measuring Risk with Probability Distributions Table or graph showing all possible outcomes/payoffs for a decision & the probability each outcome will occur To measure risk associated with a decision Examine statistical characteristics of the probability distribution of outcomes for the decision 15- Probability Distribution for Sales (Figure ) 15- Expected Value Expected value (or mean) of a probability distribution is: Where Xi is the ith outcome of a decision, pi is the probability of the ith outcome, and n is the total number of possible outcomes 15- Expected Value Does not give actual value of the random outcome Indicates “average” value of the outcomes if .

• Kinh tế học
• Managerial economics
• Lecture Managerial economics
• Strategic decision making
• Microeconomic theory
• Decision making process
• Decisions under risk
• Market interactions
• Fundamentals of managerial economics
• Marginal analysis
• Marginal benefit
• Economic principles
• Kinh tế học quản lý
• Price discrimination
• Monopolistic competition
• Oligopoly games
• Traditional oligopoly models
• Capital market
• Labour market
• Economic equations
• Economic applications
• Economic applications of derivatives
• Economic application
• Multi variable functions
• Constrained optimization
• Scatter diagram
• Forms of money
• Monetary policy
• Perfect competition
• Demand function
• Supply function
• Quantitative demand analysis
• Theory of individual behavior
• Demand estimation
• Production function
• Costs of production
• Organizing production