Uncertainty Flashcards
1
Q
Uncertainty is sometimes called risk when:
A
the likelihood of each possible outcome is known or can be estimated
2
Q
A
3
Q
A
4
Q
A
5
Q
A
6
Q
Expected Utility
A
The additional utility from getting £475,000 relative to 0 is huge. The addition utility from getting £1,000,000 relative to £475,000 is much smaller.
7
Q
A
8
Q
A
9
Q
A
10
Q
A
11
Q
A
