Category: Uncertainty
Perception of Risk
Is there less interest in risk and strategy in the Vest than in the East ?
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Public Works Projects
The solution to all this is to establish a proper simulation model for every large project and do the Monte Carlo simulation necessary to establish the total cost distribution, and then calculate the risks involved.
Selecting Strategy
When there is no uncertainty the maximum return criterion can be used to rank strategies. With uncertainty we have to look for the strategy that maximizes the firms expected utility.
