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f5…expected value

This topic has 2 replies, 3 voices, and was last updated 12 years ago by John Moffat.

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May 31, 2013 at 10:58 am #127961
Miss A..
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What is the attitude to risk of a decision maker who uses the expected value approach?
i think risk avoider…right ??
May 31, 2013 at 11:23 am #127964
phillips
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Risk neutral. Risk avoider is maximin
May 31, 2013 at 7:56 pm #128033
John Moffat
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Phillips is correct – the attitude is that of risk neutral.
(Risk avoider is maximin or minimax regret)
(If you have not watched my lecture on this then do so – it states (and explains) the risk attitude for each of the ways that the decisions can be made.)
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