In above video, we will learn guidelines for making rational decisions given decision makers attitude towards risk. Referring an example, we will compare two investments in terms of their expected returns, relative risk measurements and relative risk per unit of money returns. We will then connect this analysis to risk seeking attitudes of entrepreneurs. We will also learn how to arrive at decision making when strategic decisions need to be evaluated based on a sequence of decisions and their states of nature. We will end up with this video with “Coco-Cola” case study that underlines the importance of subjective assessment while decision making.
