1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Nady [450]
3 years ago
7

What is the difference between an optimistic approach and a pessimistic approach to decision making under assumed uncertainty

Business
1 answer:
Hitman42 [59]3 years ago
3 0

Answer:

The optimistic approach examines the best possible outcome in a given situation and chooses the 'best of the best' while the pessimistic approach examines the worst possible outcome in a given situation and chooses the 'best of the worst'.

Explanation:

Decision making under assumed uncertainty is an approach that is taken when the outcomes of future events are not entirely known. The Hurwicz criterion provides a basis on which the pessimistic and optimistic outcomes can be balanced. This criterion allows the person who makes the decision to chose a coefficient of pessimism signified by alpha (α) and it is a decimal that is graded between 0 and 1. This number signifies the worst possible outcome whereas, the number (1-α) signifies the best outcome.

So, the optimistic approach examines the best possible outcome in a given situation and allows the decision-maker to choose the 'best of the best', while the pessimistic approach examines the worst possible outcome in a given situation and the decision-maker to choose the 'best of the worst'

You might be interested in
How can entrepreneurs save money in case the government increases taxes on small businesses?
Vlad1618 [11]
1. Keep an eye on adjusted gross income.
2. Reimbursed using an accountable
3. Make smart tax elections
-I hope this helps! Have a good rest of your day/night
3 0
3 years ago
Niler Corporation reported the following after-tax information for its current fiscal year: $35,000 income from continuing opera
Helen [10]

Answer:

The net income for Niler Corporation for the current year is $30,900.

Explanation:

When there is a discontinued operation, the income from the discontinued operation is added to the income from continuing operations while the loss on disposal of the same operation is added to obtain the net income for the company. This can be done as follows for this question:

Niler Corporation

Partial Income Statement

<u>Details                                                                               $       </u>

Income from continuing operations                           35,000

income from operations of discontinued Line C         8,400

Loss on disposal of Line C                                         <u> (12,500) </u>

Net income                                                                  <u> 30,900  </u>

Therefore, the net income for Niler Corporation for the current year is $30,900.

4 0
3 years ago
If last year a pineapple cost​ $2, and this year it costs​ $4, there has been a​ ________ percent rise in the price of the pinea
finlep [7]
In order to calculate<span> the percent rise or </span>percentage increase, we should calcualte the difference (increase) <span>between the two numbers/prices: $4 and 2$. 
4-2=$2
Then we should divide the </span>increase<span> by the original number and multiply the answer by 100.
2/2*100=1*100%
So, if l</span><span>ast year a pineapple cost​ $2, and this year it costs​ $4, there has been a​ 100 percent rise in the price of the pineapple over a​ one-year period.</span>
3 0
3 years ago
Read 2 more answers
Creditors want to see that a company that owes them money has ______. Multiple choice question. liabilities that are greater tha
astraxan [27]

Answer:

Assets that are greater than its liabilities.

5 0
2 years ago
The manager of Collins Import Autos believes the number of cars sold in a day (Q) depends on two factors: (1) the number of hour
Varvara68 [4.7K]

Answer:

Explanation:

In order to be able to transform the log-linear model into a linear form that can be estimated using multiple regression analysis, we will have to multiply the equation by the natural logarithm (㏑).

Q = aHᵇSˣ

㏑ Q = ㏑a + b㏑H + x㏑S

Q* = a + bH* + xS*

3 0
3 years ago
Other questions:
  • This is the trial balance of Crane Company on September 30. CRANE COMPANY Trial Balance September 30, 2017 Debit CreditCash $ 23
    12·1 answer
  • Miguel is doing a research paper on new york city's stonewall riots of 1969. he visits the scene of the riots, interviews people
    6·1 answer
  • State licensing laws generally prescribe two levels of real estate brokerage licensing: the broker license and the salesperson l
    14·1 answer
  • When is outsourcing NOT beneficial?
    12·1 answer
  • The transactions of Spade Company:
    14·1 answer
  • Say that a monopolist purchases an expensive new machine. in order to maximize profits in the short-run, the monopolist should _
    5·2 answers
  • Real and nominal income is calculated respectively at----
    14·1 answer
  • Vaccinations are an example of which role of government?
    12·1 answer
  • 2545858597<br><br>uid of ff gyezz​
    6·1 answer
  • Difference between qualified and ordinary dividends
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!