Management -Critical Thinking

Question 1

What is the rationale behind the minimax regret rule? What are some less formal and precise methods of dealing with uncertainty? When are these useful?

Wait Before you Leave! I have something for you😊
Get your college paper done by experts
Place an order in 3 easy steps. Takes less than 5 mins.
Place an Order

 

 Question 2

How does the adverse selection problem arise in the credit- card market? How do credit- card companies reduce the adverse selection problem that they face? To what complaint does this give rise?

Get Assignment Writing Help

Our experts are ready to complete your assignment, course work. essay, test, dissertation, research paper, quiz

Get Started

 

Question 3

An individual has to choose between investment A and investment B. The individual estimates that the income and probability of the income from each investment are as given in the following table: Investment A Investment B Income Probability Income Probability 4000 0.2 4000 0.3 5000 0.3 6000 0.4 6000 0.3 8000 0.3 7000 0.2 (a) Using Excel’s statistical tools, calculate the standard deviation of the distribution of each investment. (b) Which of the two investments is more risky? (c) Which investment should the individual choose? NOTE: Use table 14-4 as reference

 

 

 

Question 4

 

An individual is considering two investment projects. Project A will return a zero profit if conditions are poor, a profit of $ 4 if conditions are good, and a profit of $ 8 if conditions are excellent. Project B will return a profit of $ 2 if conditions are poor, a profit of $ 3 if conditions are good, and a profit of $ 4 if conditions are excellent. The probability distribution of conditions is as follows:

 

 

Needs help with similar assignment?

We are available 24x7 to deliver the best services and assignment ready within 3-4 hours? Order a custom-written, plagiarism-free paper

Order Over WhatsApp Place an Order Online

"Do you have an upcoming essay or assignment due?


Get any topic done in as little as 6 hours

If yes Order Similar Paper

All of our assignments are originally produced, unique, and free of plagiarism.

Stuck with a Question?

Get it solved from our top experts within 8 hrs!

Ask Your Question Now!