decisions under risk
There is usually little assurance that predicted futures will coincide with actual futures. The physical and economic elements on which a course of action depends may vary from their estimated values because of chance causes. Not only are the estimates of future costs problematical but ,in addition, the anticipated future worth of most ventures is known only with a degree of assurance. This lack of certainty about the future makes decision making one of the most challenging tasks faced by individuals ,industry ,and government.
Decision making under risk occurs when he decision maker does not suppress acknowledged ignorance about the future but makes it explicit through the assignment of probabilities ,such probabilities may be based on experimental evidence , expert opinion ,subjective judgment ,or a combination of these.
Consider the following example. A computer systems firm has the opportunity to bid on two related contracts being advertised by a municipality. The first pertains to the selection and installation of hardware for a central computing facility together with required software. The second involves the development of a distributed computing network involving the selection and installation of hardware and software. The firm may be awarded either contract C1 or contract C2, or both contract C1 and C2. Thus, there are three possible futures.
Careful consideration of the possible approaches leads to the identification of five alternatives. The first is for the firm to subcontract the hardware selection and installation, but to develop the software itself. The second is for the firm to subcontract the software development, but to select and install the hardware itself. The third is for the firm to handle both the hardware and software tasks itself. The fourth is for the firm to bid jointly with a partner firm on both the hardware and software projects. The fifth alternative is for the firm to serve only as project manager, subcontracting all hardware and software tasks.
With the possible futures and various alternatives identified, the next step is to determine payoff values.
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Decision making under risk occurs when he decision maker does not suppress 当决策制定者意识到(承认)对未来的认知并不完整,相应的风险存在,acknowledged ignorance about the future but makes it explicit through the assignment of 风险决策制定就会有其用武之地。probabilities ,such probabilities m...
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高分悬赏论文英文翻译—满意的另加50~100分。
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