TAILIEUCHUNG - Lecture Managerial economics (10/e): Chapter 15 - Christopher R. Thomas, S. Charles Maurice

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. Conditions of risk occur when a manager must make a decision for which the outcome is not known with certainty. | Chapter 15: Decisions Under Risk and Uncertainty McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved. 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 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 Probability Distribution for Sales (Figure ) 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 Expected Value Does not give actual

• Quản trị kinh doanh
• Managerial economics
• Lecture Managerial economics
• Microeconomic theory
• Economic theory
• Decisions under risk
• Probability distributions
• 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