Difference between a risk averter and a risk seeker

Reference no: EM132953960

1. What is the difference between an event and an alternative course of action?

2. What are the advantages and disadvantages of a payoff table as compared to a decision tree?

3. What is the meaning of the expected value of perfect infor- mation (EVPI)?

4. How does the expected value of perfect information differ from the expected profit under certainty?

5. What are the advantages and disadvantages of using expected monetary value (EMV) as compared to the return-to-risk ratio (RTRR)?

6. How is Bayes' theorem used to revise probabilities in light of sample information?

7. What is the difference between a risk averter and a risk seeker?

8. Why should you use utilities instead of payoffs in certain circumstances?

Reference no: EM132953960

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