# Risk and Uncertainty ACCA F5 lecture part b

#### Risk and Uncertainty: Please note that this lecture relates to Chapter 10 of the Course Notes (not chapter 9 as stated in the lecture).

1. says

That was a really nice lecture. Thanks
My question is in the part c. how much would you be willing to pay to obtain perfect knowledge of the demand level

• says

I will re-record the lecture and include part c, but in the meantime have you looked at the answer in the course notes?

• says

Thank you. I Just looked at the answer in the course note and its pretty much clear.

2. says

MiniMax Regret Table – Confusion.

Good evening, quick question. When do we use the figures from Rows or Columns when calculating Minimax rules. In this lecture we have used the figures from the Columns. In other lectures examples we use rows.

• says

It doesn’t matter how you show the table ( rows or columns ) what matters is understanding the logic behind the criterion being used – you mustn’t try simply to learn rules, the examiner will check you understand by asking you to write about them.

3. says

As for me it’s the best explanation concerning this point. It was really difficult subject-matter for me… Thanks a lot!

4. says

Hi john. no doubt u r a great lecturer!
but i am little bit confused about , why did u multiplied the probabilities with the profits rather than demand? In the notes probabilities are for demand.

• says

We need the expected profits to be able to make the decision.

Since each of the profits are due to each level of demand, the probability of each profit is the same as that of the related demand.

• says

Thanx sir john! so nice of you!

5. says

thanks very much for the lecture. the practise question 6 Joker part (c) answer seems wrong, should be: fee of \$180= 15750x(180-81.5)=1,551,375, and the same for other 2 options \$(200-81.5)x13125, and (220-81.50)x10500. but the answer in the notes are each fee multiple the variable cost rather than subtract.

• says

It is a typing mistake – the final answers are correct though.

Thank you for pointing it out. I will have that page corrected.

6. says

I cant wait for the 2nd Dec 2013. The exam sitting date…uhhh…when will that day come…