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).

ACCA F5 lectures Download OpenTuition F5 notes


  1. Profile photo of Lee Taylor 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.

    • Profile photo of John Moffat 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.

  2. avatar 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.

  3. avatar 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.

  4. Profile photo of Mahoysam says

    I will have to comment on every lecture I am watching and say thank you.

    I am not starting to review F5 and I am reviewing it using your lectures to give me a clear understanding, really thanks!


  5. avatar says

    with the maximin and maximax our focus was on profit outcomes based on contract size but with minimax regret our focus did shift to profit outcomes based on normal demand.
    Why the shift?

    • Profile photo of John Moffat says

      Listen to the lecture very carefully.
      The reason is that on this approach we are looking (in the regret table) at how much we would ‘lose’ by having made the wrong decision. This depends on what the normal demand turns out to be.

  6. avatar says

    clear indeed where a deaf can even hear and a blind can see.thanks to opentuition.may you keep on doing the good job.but wat happen to part c and the other section.hop u will add it.with u guys im confident on my exams

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