Module 4 Take Home Assignment #4 – Risk Management & Decision Making

Business Finance

Read the notes posted in the reading assignment. Go through Problem 2 and then do the following questions:

  • If ABC Inc. decides to change all references; $115 to $110 and $125 to $130. What is the best decision and its correspondent EMV? (Repeat the same process as discussed in the notes)
  • What decision would a maximin decision maker chooses? Which decision would a maximax decision maker chooses? Would you defend either of these criteria for this particular example?
0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *