Describing risk, Microeconomics

Describing Risk

* To measure risk we should know:

 1) All the outcomes which are possible.

 2) The probability that each outcome will occur.

* Interpreting Probability

- The probability of the given outcome to occur

* Interpreting Probability

- The probability which the given outcome will occur

- Objective Interpretation

  • Based on frequency which is observed of past events

- Subjective

  • Based on experience or perception with or without an observed frequency

-  Different information or abilities to process the same information can influence subjective probability 

Posted Date: 10/10/2012 8:15:52 AM | Location : United States







Related Discussions:- Describing risk, Assignment Help, Ask Question on Describing risk, Get Answer, Expert's Help, Describing risk Discussions

Write discussion on Describing risk
Your posts are moderated
Related Questions
Explain the difference between elastic and fixed supply

Interest rate sensitivity can also be understood from another perspective.  The total cost of a commodity is not just its price, but also what must be paid to borrow money to purch

Choosing Inputs  How to minimize cost for the given level of output. We can do so by combining Isocosts with Isoquants                              Producing a

Explain about the content of factor markets and the distribution of income. Content of factor markets and the distribution of income: a. Factor distribution of income b.

once vaccinated,a person cannot catch a cold or give a cold to someone else. As a result,the marginal social benefit resulting from consumption of the vaccine.

What is a negative externality?


PARAMETERS FOR ASSESSING ECONOMIC REFORMS: Let it be clearly understood that liberalisation, privatisation and globalisation are means with the help of which the growth proces

What is the difference between economics and business?  Economics is the study of how we, the people, engage ourselves in production, distribution and consumption of goods and

negative slope on ppf represents what?