20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for June 2026 exams.
Get your discount code >>

f5…expected value

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

Viewing 3 posts - 1 through 3 (of 3 total)

Author
Posts
May 31, 2013 at 10:58 am #127961
Miss A..
Member
- Topics: 32
- Replies: 41
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
Participant
- Topics: 7
- Replies: 20
Risk neutral. Risk avoider is maximin
May 31, 2013 at 7:56 pm #128033
John Moffat
Keymaster
- Topics: 57
- Replies: 54835
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.)
Author
Posts

Viewing 3 posts - 1 through 3 (of 3 total)

You must be logged in to reply to this topic.